Yesterday we got another strong US jobs report as the Job Openings data beat expectations by a big margin. Coupled with the last week’s beat in Jobless Claims and this week ISM Manufacturing PMI, the market is starting to lose faith in a quick return to lower interest rates and might even fear higher rates. Overall, the data is still supporting the soft landing narrative but the market shouldn’t be priced for neither higher rates nor a hard landing.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite remains under pressure and the fall back below the key support is a bad omen for the buyers. The buyers should keep on defending this level and target a rally into the downward trendline, but if the price breaks the low, the sellers are likely to pile in even more aggressively and take the price into the next support around the 12274 level.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the Nasdaq Composite bounced on the key support and pulled back into the red 21 moving average and the 38.2% Fibonacci retracement level where it found strong sellers waiting for another leg lower. The buyers will need the price to break above the 38.2% Fibonacci retracement level to turn around the trend and target new highs.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see the low around the 12965 which is going to be the last line of defence for the buyers and might turn into a double bottom pattern. This is where we are likely to see the buyers stepping in with a defined risk below the low to position for a rally into the highs. The sellers, on the other hand, will want to see the price breaking below the low to pile in even more aggressively and extend the drop into the 12274 support.
Upcoming Events
Today on the agenda we have the ADP report and the ISM Services PMI. Tomorrow, we will see the latest Jobless Claims data, which continues to show a solid labour market. Finally on Friday, it will be the time for the NFP report which is the only one the Fed will see before its next rate decision.