Yesterday, the Nasdaq Composite finished the day almost flat as the lack of bearish catalysts continues to support the market. In fact, the path of least resistance remains to the upside as growth and employment stay resilient, and the Fed continues to signal three rate cuts this year even if inflation reaccelerates a bit.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite has been diverging with the MACD for a long time. This is generally a sign of weakening momentum often followed by pullbacks or reversals. We continue to trade inside the rising wedge, so if the price were to break below the trendline, the sellers will have much more conviction to look for new lows with the base of the wedge at 14477 being the ultimate target.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price bounced near the bottom trendline where we had the confluence of the red 21 moving average and the 50% Fibonacci retracement level. This is where the buyers kept on stepping in with a defined risk below the trendline to position for a rally into a new all-time high. The sellers, on the other hand, will want to wait for the price to break below the trendline before even considering going short in this market.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the recent price action with the price yesterday rallying into the close. We can also see that we have now a black counter-trendline. The buyers will want to see the price breaking above the counter-trendline to gain even more conviction and increase the bullish bets into a new all-time high.
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