Yesterday, the Nasdaq Composite Index opened lower following a sell-off sparked by surprisingly strong Core PCE data in the first quarter US GDP report. The market began to moderate the movement from the opening and ultimately ended the day almost unchanged. Today we wrap up the week with the US PCE report and judging by yesterday’s price action we could see another rally at least until the new month’s data of the week next change the feeling.
Nasdaq Composite Technical Analysis – Daily Timeline
Nasdaq Composite Daily
On the daily chart, we can see that the Nasdaq Composite opened lower yesterday, but eventually rebounded to the previous day’s lows. From a risk management perspective, sellers will have much better risk to reward a setup around the 15929 level where they will also find the confluence of the 50% Fibonacci retracement level and the red 21 moving average. Buyers , on the other hand, will want to see the price move higher to invalidate the bearish setup and increase bullish bets to a new all-time high.
Nasdaq Composite Technical Analysis – 4 Hour Timeframe
Nasdaq Composite 4 hours
On the 4-hour chart, we can see that the price has been rejected from the 21 moving average over this time frame. Given yesterday’s price action, we could see another push higher, up to resistance at 15929, where sellers will look to pile in with risk set above resistance for positioning itself on new lows.
Nasdaq Composite Technical Analysis – 1 Hour Timeframe
Nasdaq Composite 1 hour
On the hourly chart we can take a closer look at yesterday’s negative gap which was filled shortly after as the market rallied throughout the trading session. Additionally, we should see a positive variance today as the tech sector’s after-hours earnings were much better than expected and some key stocks like Alphabet hit new highs.
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