Yesterday, the Fed kept interest rates
unchanged as anticipated however that is not what the market was searching for going into
the occasion. The market was centered solely on the Dot Plot and the Fed determined to
validate the market’s dovish pricing projecting a 2024 year-end peak price at
4.6%. The expectations had been for the Fed to maintain two price cuts for 2024, however the
Fed determined to extend that to 3, mainly agreeing with the market that
price cuts are coming.
Furthermore, Fed Chair Powell did not
push again in opposition to the sturdy dovish pricing and even mentioned that they’re centered
on not making the error of holding charges excessive for too lengthy, which suggests
{that a} price reduce might come fairly quickly. This gave a robust increase to the Nasdaq
Composite resulting in new highs with the sentiment turning closely bullish.
Nasdaq Composite Technical
Evaluation – Day by day Timeframe
Nasdaq Composite Day by day
On the day by day chart, we are able to see that the Nasdaq Composite
yesterday prolonged the rally to new highs following the Fed’s pivot. It’s by no means
a good suggestion to chase the worth, particularly when there’s plenty of FOMO within the
market, so the patrons may need to watch for a pullback first earlier than taking new
positions.
Nasdaq Composite Technical
Evaluation – 4 hour Timeframe
Nasdaq Composite 4 hour
On the 4 hour chart, we are able to see that the breakout
above the cycle excessive is diverging with the
MACD. That is
usually an indication of weakening momentum usually adopted by pullbacks or
reversals. On this case, we now have a trendline
connecting the newest swing lows and the patrons may need to lean on it
as they can even discover the purple 21 moving average for confluence.
Nasdaq Composite Technical
Evaluation – 1 hour Timeframe
Nasdaq Composite 1 hour
On the 1 hour chart, we are able to see that we
have one other minor trendline with a steeper slope. Extra aggressive patrons may
need to lean on it as they can even have the purple 21 transferring common for
confluence. Extra conservative patrons may need to watch for a deeper pullback
into the foremost trendline the place we now have additionally the 50% Fibonacci
retracement level. Alternatively, the patrons might break up
their place in half and enter at each the trendlines to keep away from lacking out on
an eventual rally. The sellers, then again, will doubtless pile in at each
break decrease with a break beneath the foremost trendline triggering a stronger
selloff into the 14050 support.
Upcoming
Occasions
Today we’ll see the newest US Retail Gross sales and
Jobless Claims figures, whereas tomorrow we conclude the week with the US PMIs.
