Yesterday, the Nasdaq Composite got under pressure for a couple of hours following the big miss across the board in the US Retail Sales data. The market though bounced back strongly afterwards and erased all the losses to finish the day positive. The buyers look like they are on a mission as the all-time high remains closely in sight. There’s clearly a strong risk-on sentiment but it’s becoming very overstretched, and, in such instances, there are risks of quick selloffs as soon as a catalyst turns the sentiment around.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite bounced on the key trendline where we had also the confluence with the red 21 moving average and extended the rally into the 15900 level as the buyers continue to target the all-time high. The sellers, on the other hand, will need the price to reverse and break below the trendline to switch the bias from bullish to bearish and start targeting new lows.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we had also the 50% Fibonacci retracement level adding extra confluence around the trendline. There’s not much to do here given that the price is right in the middle of the key levels, so we need to zoom in to get some more clarity.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the buyers can now lean on the minor black trendline but if the price breaks below it, they will have another opportunity to buy around the major trendline with a better risk to reward setup.
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Today we get the US PPI data and the University of Michigan Consumer Sentiment survey.
