Yesterday, the market reopened after the Presidents Day holiday, and we saw some weakness in the Nasdaq Composite with the price even breaking a key trendline. There was no fresh catalyst so it might have been just some profit taking or defensive positioning into Nvidia earnings today after the close. The other major development was the PBoC delivering the biggest 5-year LPR rate cut on record, which could lift the general risk sentiment and support the stock market.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite yesterday broke through the key trendline and the red 21 moving average with the sellers piling in for a bigger correction into the 15150 support. The price though erased most of the losses and finished the day near the trendline. The buyers will likely buy this dip expecting a stronger bounce, while the sellers will look for a continuation in the next few days.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more closely the break and what could be a retest now. This is where the sellers will likely step in with a defined risk above the trendline to position for a drop into the 15150 support. The buyers, on the other hand, will want to see the price rallying back above the trendline to invalidate the bearish setup and position for a rally into the all-time high.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see the key support now turned resistance marked by the green box. What happens here will likely decide where the market will go in the next few days or weeks.
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Today we have the FOMC Meeting Minutes on the agenda while tomorrow we will see the latest US Jobless Claims figures and US PMIs.
