Last week, the Fed hiked by 25 bps as expected and left everything unchanged. The market was more focused on the press conference to see if Fed Chair Powell would hint to the next policy move. Unfortunately, Powell just repeated that they are data dependent and that all options are on the table for the September meeting. Since the FOMC meeting, the data has been supporting the soft-landing narrative as the US Jobless Claims beat expectations once again and the US PCE and the Employment Cost Index missed forecasts.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite bounced again on the red 21 moving average and it’s now eyeing the key 14649 resistance. A break above that level would open the door for the all-time high, but the sellers are likely to step in aggressively there.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a divergence with the MACD which is generally a sign of weakening momentum often followed by pullbacks or reversals. In this case, the price pulled back to the trendline and bounced as the buyers stepped in to target the breakout of the resistance.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we also had the 50% Fibonacci retracement level near the trendline, so the buyers had some good confluence there. This is clearly a bull market, so the sellers are likely to lean on the 14649 resistance with a defined risk above the level to target a bigger pullback or wait for the price to fall below the trendline to pile in and extend the fall into the next major trendline.
Upcoming Events
This week is packed with several top tier economic indicators. We start tomorrow with the US Manufacturing PMI and the US Job Openings data. Moving on to Wednesday, we will see the latest US ADP report. On Thursday, the market will be focused on the US Jobless Claims and the US ISM Services PMI. We then conclude on Friday with the main event of the week: the US NFP report.
