Overview
The Nasdaq climbed to recent highs last Friday, despite higher-than-expected US CPI and PPI reports. The Fed focuses on the PCE, and the Core PCE is expected to drop to 2.6% year-over-year.
The market no longer anticipates aggressive rate cuts, aligning with the Fed’s outlook. As a result, we can expect rate cuts within a stable economy, which is positive for stocks.
It’s important to note that the Fed’s response has shifted. Stronger data may only pause the easing cycle without tightening plans. The upcoming US election in November poses a significant risk.
Nasdaq Technical Analysis – Daily Timeframe
The Nasdaq is near recent highs around 2530. Sellers may enter here, targeting a drop to 19818, while buyers hope for a breakout to new highs.
Nasdaq Technical Analysis – 4 Hour Timeframe
The 4-hour chart shows higher lows approaching the 20530 level. Sellers will watch for a rejection, while buyers seek a breakout to new highs.
Nasdaq Technical Analysis – 1 Hour Timeframe
The 1-hour chart shows consolidation between 2500 resistance and 2330 support. Buyers look for an upside breakout, while sellers aim for a drop to 19800. The red lines indicate today’s average daily range.
Upcoming Catalysts
This week is light on data, with key events including Fed’s Waller speaking today and US Retail Sales and Jobless Claims data on Thursday.
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