Nasdaq Technical Analysis – Time for a rally into the all-time high?
Fundamental OverviewThe Nasdaq rallied to the recent highs last Friday despite the higher-than-expected US CPI and PPI reports. The Fed targets the PCE though and the Core PCE Y/Y is now expected to tick lower to 2.6%. The market has now priced out the aggressive rate cuts expectations and it’s almost perfectly in line with the Fed’s projections. Therefore, we will continue to see rate cuts into a resilient economy, which is a bullish driver for the stock market.Also, as a reminder, the Fed’s reaction function has changed, so stronger data will just potentially cause a pause in the easing cycle at most. They are not even thinking about tightening anymore. The next big risk event for the market will be the US election in November. Nasdaq Technical Analysis – Daily TimeframeOn the daily chart, we can see that the Nasdaq is now back to the recent highs around the 2530 level. This is where we can expect the sellers to step in with a defined risk above the high to position for a drop back into the 19818 level. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into the all-time high. Nasdaq Technical Analysis – 4 hour TimeframeOn the 4 hour chart, we can see more clearly the recent price action with higher lows pushing into the 20530 level. There’s not much we can glean from this timeframe as the sellers will look for a rejection from the high, while the buyers will want to see a break to push into new highs.Nasdaq Technical Analysis – 1 hour TimeframeOn the 1 hour chart, we can see that the market has been consolidating between the 2500 resistance and the 2330 support. The buyers will look for an upside breakout to push into new highs, while the sellers will want to see the price breaking lower to target a drop into the 19800 level. The red lines define the average daily range for today. Upcoming CatalystsThis week is pretty empty on the data front with just a couple of key economic releases. Today, we have Fed’s Waller speaking, while on Thursday, we get the US Retail Sales and US Jobless Claims data. This article was written by Giuseppe Dellamotta at www.forexlive.com.
Fundamental Overview
The Nasdaq rallied to the recent highs last Friday despite the higher-than-expected US CPI and PPI reports. The Fed targets the PCE though and the Core PCE Y/Y is now expected to tick lower to 2.6%.
The market has now priced out the aggressive rate cuts expectations and it’s almost perfectly in line with the Fed’s projections. Therefore, we will continue to see rate cuts into a resilient economy, which is a bullish driver for the stock market.
Also, as a reminder, the Fed’s reaction function has changed, so stronger data will just potentially cause a pause in the easing cycle at most. They are not even thinking about tightening anymore. The next big risk event for the market will be the US election in November.
Nasdaq Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq is now back to the recent highs around the 2530 level. This is where we can expect the sellers to step in with a defined risk above the high to position for a drop back into the 19818 level. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into the all-time high.
Nasdaq Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly the recent price action with higher lows pushing into the 20530 level. There’s not much we can glean from this timeframe as the sellers will look for a rejection from the high, while the buyers will want to see a break to push into new highs.
Nasdaq Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the market has been consolidating between the 2500 resistance and the 2330 support. The buyers will look for an upside breakout to push into new highs, while the sellers will want to see the price breaking lower to target a drop into the 19800 level. The red lines define the average daily range for today.
Upcoming Catalysts
This week is pretty empty on the data front with just a couple of key economic releases. Today, we have Fed’s Waller speaking, while on Thursday, we get the US Retail Sales and US Jobless Claims data. This article was written by Giuseppe Dellamotta at www.forexlive.com.
