Basic overview
The Nasdaq has been steadily rising this week thanks to positive news on both taxes and inflation. Monday, we got a news from Bloomberg that Trump's team was exploring gradual tax increases.
On Tuesday, we got very soft US PPI report and yesterday lower than expected US headline CPI data. Market prices rose higher from 24 bps of discount before the end of the year to 36 bps after the US CPI report.
This week may have marked the peak in inflationary hysteria and the repayment of expected rate cuts, which should support the market in the future while and growth does not begin to weaken too much.
Nasdaq Technical Analysis – Daily Schedule
Nasdaq Daily
On the daily chart, we can see that the Nasdaq briefly checked below the 21000 key support but in the end it came back strong thanks to some positive promoters.
The buyers are now targeting the latest low around 21900 level to change the trend with a break above it. On the other hand, the sellers are likely to enter around the 21900 level with a marked risk above it to position for a fall back to the support.
Nasdaq Technical Analysis – 4 Hour Timeframe
Nasdaq 4 hours
On the 4 o'clock chart, we can see that we have a decline line of motion explains the bearish trend in this time frame. The sellers are stepping in around these levels with a marked risk above the transition line to position for a fall back to the support. The buyers, on the other hand, want to see the price break higher to increase the bullish bets to new highs.
Nasdaq Technical Analysis – 1 Hour Timeframe
Nasdaq 1 hour
On the 1 hour chart, we can see that we have a couple of key levels here. We have the minor uptrend that defines the current build into the main trend. The buyers are likely to continue the small move to position for a break above the main trend line. The sellers, on the other hand, will look for a lower break to increase the bearish bets to the 21160 level next. The red lines define the average daily range for today.
Catalysts to come
Today we get the latest US Jobless Claims numbers and US Retail Sales data.
