Fundamental Overview
The Nasdaq rose to recent highs last Friday, despite higher-than-expected US CPI and PPI reports. The Fed focuses on PCE, with the Core PCE expected to drop to 2.6% year-over-year. The market has adjusted its rate cut expectations, aligning with the Fed’s outlook, which is positive for stocks.
The Fed’s approach has changed; strong data may only pause rate cuts, and they’re not considering tightening. The next major risk is the US election in November.
Nasdaq Technical Analysis – Daily Timeframe
The Nasdaq is back to recent highs near 2530, where sellers may enter, while buyers hope for a breakout towards all-time highs.
Nasdaq Technical Analysis – 4 Hour Timeframe
The 4-hour chart shows higher lows approaching 20530, but there’s not much clarity; sellers await rejection from the high, while buyers look for a breakout.
Nasdaq Technical Analysis – 1 Hour Timeframe
The 1-hour chart shows consolidation between 2500 resistance and 2330 support. Buyers seek a breakout for new highs, while sellers target a drop to 19800. The red lines indicate today’s average daily range.
Upcoming Catalysts
This week is light on data, featuring Fed’s Waller speaking today, followed by US Retail Sales and Jobless Claims on Thursday.
