Fundamental Overview
The Nasdaq rose last Friday despite higher-than-expected US CPI and PPI reports. However, the Fed focuses on the PCE, with the Core PCE expected to fall to 2.6%. The market has adjusted its rate cut expectations in line with the Fed’s outlook, suggesting continued cuts in a strong economy, which is positive for stocks.
It’s important to note that the Fed’s response strategy has shifted; stronger data may only pause the easing cycle, with no plans for tightening. The upcoming US election in November poses a significant market risk.
Nasdaq Technical Analysis – Daily Timeframe
The Nasdaq is nearing recent highs around 2530. Sellers may enter here, while buyers are looking for a price breakout to challenge all-time highs.
Nasdaq Technical Analysis – 4 Hour Timeframe
In the 4-hour chart, recent price actions show higher lows near the 20530 level. Sellers may look for rejection points, while buyers seek upward breaks to new highs.
Nasdaq Technical Analysis – 1 Hour Timeframe
The 1-hour chart shows the market consolidating between 2500 resistance and 2330 support. Buyers target breakouts for new highs, while sellers aim for drops to the 19800 level. The red lines indicate today’s average daily range.
Upcoming Catalysts
This week has few significant data releases. Today includes a speech from Fed’s Waller, and on Thursday, we will see US Retail Sales and Jobless Claims data.
