Nasdaq Technical Analysis – The Fed signals no help
Fundamental Overview . . The FOMC decision didn’t provide anything new. In fact, the Fed delivered on expectations with no surprises whatsoever.
FundamentalOverview
The FOMC decision didn’tprovide anything new. In fact, the Fed delivered on expectations with nosurprises whatsoever. The central bank kept rates steady, reduced the QT pace,revised growth lower and inflation higher, and kept the dot plot mostly unchanged.
Fed Chair Powellacknowledged the current uncertainty around Trump’s policies and the inflationoutlook but confirmed that the economy remains healthy, and the Fed is in agood position to wait for more clarity.
The only noteworthy commentwas the dismissal of the rise in the long-term inflation expectations in theUniversity of Michigan Consumer Sentiment survey as he labelled it as anoutlier given that other metrics show long term expectations stable or even slightlylower.
Today, we get the USJobless Claims figures which continue to show a stable labour market but it’sworth to keep an eye on them for early signs of weakness. The next key event isscheduled for Monday when we get the US Flash PMIs which coupled with the UMichinflation expectations triggered the growth scare last month.
NasdaqTechnical Analysis – Daily Timeframe
On the daily chart, we cansee that the Nasdaq eventually pulled all the way back to the broken trendline. The price has been struggling tobreak above it as the sellers continue to pile in with a defined risk above thetrendline to position for a drop into the 17373 level next. The buyers, on theother hand, will want to see the price breaking higher to gain more control andstart targeting the 20705 level next.
Nasdaq TechnicalAnalysis – 4 hour Timeframe
On the 4 hour chart, we cansee that we have an upward trendline defining the bullish momentum on this timeframe. The buyers willlikely lean on the trendline to keep pushing into new highs, while the sellerswill look for a break lower to increase the bearish bets into new lows.
Nasdaq TechnicalAnalysis – 1 hour Timeframe
On the 1 hour chart, there’snot much we can add here as the buyers will step in around the trendline, whilethe sellers will continue to pile in as long as the price stays below thetrendline. The red lines define the average daily range for today.
Upcoming Catalysts
Today we get the latest US Jobless Claimsfigures.
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