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Basic overview
We had some good news last week when both… Consumer price index
And the Producer price index
It came on the soft side. This would help the stock market in the bigger picture because it would give the Fed more confidence to start cutting interest rates in the latter part of the year.
Last week’s FOMC decision was minor Tighter Than expected, however Federal Reserve Chairman Powell They explained that their estimates are subject to change because they are still highly data-driven, so the market beat the Fed’s expectations.
Risk appetite remains somewhat ambiguous, but the negative mood that prevailed last week appears to be dissipating. Today we have US retail sales data, and the good data should support the market and improve risk appetite.
Nasdaq Technical Analysis – Daily Time Frame
Nasdaq Daily
On the daily chart, we can see that the Nasdaq continues to record all-time highs, as the path of least resistance remains to the upside. From a risk management perspective, buyers will have a better risk to reward setup around Trend line Where they will also find Confluence of two rivers From 61.8% Fibonacci retracement level. However, at the moment, it is unlikely that we will see such a large pullback unless we get some really bad US data.
Nasdaq Technical Analysis – 4 Hours Time Frame
Nasdaq 4 hours
On the 4-hour chart, we can see that we have a good situation supports An area around the 19800 level where we can find the intersection of a minor trend line and the 38.2% Fibonacci retracement level. If the price gets there, we can expect buyers to rely on the trend line with identified risks below it to position themselves for another rally with a better risk to reward setup. On the other hand, sellers will want to see the price break down to increase bearish bets to the 19,000 level next.
Nasdaq Technical Analysis – 1 Hour Time Frame
Nasdaq 1 hour
On the hourly chart, we can see that we have a lower limit of the line Average daily range For today around the last resistance has now turned into support. If we get a dip in weak US retail sales data, buyers may step in there to fade the reaction and position for new highs.
Upcoming stimuli
today We have retail sales in the United States and industrial production in the United States. On Thursday, we will get US housing starts, building permits and the latest US unemployment claims numbers. On Friday, we conclude the week with US PMIs.
