Yesterday, the Nasdaq Composite finished the day mostly flat as the lack of catalysts and the wait for the major economic releases kept the market at bay. The week will start today as the we get some economic data and from tomorrow onwards, we will have the top tier releases and the FOMC rate decision. The market might not like another set of hot data as that should translate in more hawkish repricing in interest rates expectations with even a rate hike becoming more likely. Right now, good but not too hot data is what the market is looking for to push into new highs.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite reached a key resistance zone around the 15929 level where we can also find the confluence of the 61.8% Fibonacci retracement level and the red 21 moving average. This is where the sellers will likely step in with a defined risk above the Fibonacci level to position for a drop into new lows. The buyers, on the other hand, will want to see the price breaking higher to invalidate the bearish setup and increase the bullish bets into a new all-time high.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price got stuck into a little consolidation at the resistance although the price continues to slowly push to the upside. This week we have key economic data and the FOMC rate decision on the agenda, so the direction will likely be set by the data releases.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price action into the resistance level might have formed a bearish flag, but we will need to see the price breaking the bottom trendline to confirm it. In case of a breakout to the downside, the measured target would stand around the 14700 level.
Upcoming Events
Today, we have the US Q1 Employment Cost Index and the Consumer Confidence report. Tomorrow, we get the US ADP, the ISM Manufacturing PMI, the Job Openings and the FOMC rate decision. On Thursday, we will see the latest US Jobless Claims figures. On Friday, we conclude the week with the US NFP and ISM Services PMI.
