The Fed yesterday hiked by 25 bps as expected and left the policy statement basically 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, so as it has been for the past few months, the data is what really matters now.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite leant on the red 21 moving average for the latest rally towards the 14649 resistance. We may expect the same happening again as the price is also near a previous swing high that could act as support.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we a divergence with the MACD which is generally a sign of weakening momentum often followed by pullbacks or reversals. In this case, the pullback should resolve near the minor upward trendline where the buyers are likely to pile in with a defined risk below the swing support and target the 14649 high. The sellers, on the other hand, will want to see the price breaking below the trendline to pile in and extend the pullback into the major upward trendline below.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price has been stuck in a tight range between the 13995 level and the 14200 one. A breakout on either side should lead to a quick move with the buyers targeting the high in case of an upside break and the sellers targeting the major trendline in case of a downside break.
Upcoming Events
Today the market will be focused on the US Jobless Claims report as the Fed is particularly attentive to the labour market performance for its policy decisions. A big beat should support the Nasdaq Composite as the soft-landing vibes will prevail. On the other hand, a big miss may cause some weakness in the index as it may trigger some recessionary fears. Tomorrow, the attention will switch to the US PCE and ECI reports with the market likely to be more interested on the wages data.
