Yesterday, the Nasdaq Composite remained under pressure as the market continued to reprice the aggressive rate cuts expectations following Fed’s Waller comments. Moreover, the economic data surprised once again to the upside with the US Retail Sales beating expectations across the board and Industrial Production edging up. Overall, the soft-landing narrative is still intact but in the short term the market is readjusting to tighter monetary conditions.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite eventually pulled back into the key 14780 level and bounced back as the buyers piled in to position for a rally into a new high. The sellers, on the other hand, will want to see the price breaking lower to position for a drop into the 14050 level.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly the bounce right from the key level where we had also the confluence with the 50% Fibonacci retracement level and the red 21 moving average. The buyers will now wait for their trade to work out but also ready to fold in case the price reverses and breaks below the key level. The sellers, on the other hand, will need to wait patiently for their opportunity.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price run into a swing level where we can also find the red 21 moving average for confluence. Some aggressive sellers might want to step in here with a defined risk above it to position for a drop back into the support and target a break lower. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into a new high.
Upcoming Events
Today, we will see the latest US Jobless Claims figures, while tomorrow we conclude the week with the University of Michigan Consumer Sentiment survey.
