Yesterday, the Nasdaq Composite ended the day negative as the relief rally reached some key resistance levels. The first part of the week has been pretty empty on the data front, and we hadn’t any Fedspeak due to the blackout period. This has led to a relief rally which was exacerbated by weaker US PMIs as the market interpreted them as good news for inflation, although there were some worrying commentary on the labour market side. Beginning today, we will have many top tier economic data ahead as the new month comes with new reports.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite yesterday found resistance near the 50.0% Fibonacci retracement level. If we get another push higher, the sellers should step in around the 15929 resistance where they will also find the red 21 moving average for confluence. The buyers, on the other hand, will want to see the price breaking higher to invalidate the bearish setup and increase the bullish bets into a new all-time high.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price got rejected from the 21 moving average on this timeframe. The 15929 resistance will be key because it should tell us if this was just a pullback before another flush lower or the first move towards a new all-time high.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have some minor support around the 15620 level where we can find the confluence of the 38.2% Fibonacci retracement level and the red 21 moving average. This is where we can expect the buyers to step in to position for a break above the 15929 resistance with a better risk to reward setup. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into new lows.
Upcoming Events
Today we get the US Q1 GDP and the latest US Jobless Claims figures. Tomorrow, we conclude the week with the US PCE report.
