Yesterday, the Nasdaq Composite finished the day positive despite some pressure for most of the day. There was no catalyst for the selling other than some general risk off sentiment due to impending Nvidia earnings. The company crushed expectations and the stock surged in after-hours trading, so we can expect the market to open higher today. Moreover, we got the FOMC Meeting Minutes yesterday but as it’s always the case, they were stale and didn’t contain anything that the market didn’t already know. Today we will see the latest US Jobless Claims figures and the US PMIs which will likely be big market movers.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite recently 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 market though bounced back into the close erasing most of the losses and finishing the day near the trendline. Today we can expect the market to open above the trendline and the buyers to pile in more aggressively as the FOMO will probably kick in.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more closely what could have ended up being a retest of the resistance before another selloff into the 15150 support. This setup is now invalidated, so the sellers will need to wait for another break below the trendline before considering new positions. The buyers, on the other hand, will likely push the price into the all-time high now unless we get some ugly economic data.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see the key zone marked by the green box that separated the bearish setup from the bullish one. Given that we open above it today, the bullish setup is the one that got confirmed, so the buyers will likely remain in control.
