Yesterday, the Nasdaq Composite erased the CPI decline and returned to cycle highs. The move came despite the market expecting fewer rate cuts than the Fed’s Dot Plot and some investment banks only expecting one cut in 2024. The market appears to confirm that as long as the economy remains resilient and that we do not get additional measures. hikes, we can continue to climb to new heights.
Nasdaq Composite Technical Analysis – Daily Timeline
Nasdaq Composite Daily
On the daily chart we can see that the Nasdaq Composite has been consolidating around the 16206 level for over a month and despite another hot US CPI, the price was unable to reach new lows. This could be a sign that the market is more likely to experience an upside breakout and record new all-time highs.
Nasdaq Composite Technical Analysis – 4 Hour Timeframe
Nasdaq Composite 4 hours
On the 4-hour chart, we can see that price has returned to yesterday’s cycle highs with the market threatening a breakout. Sellers could try one last time to intervene here with risk set above the highs to position themselves for a decline to the 15929 level. Buyers, on the other hand, will want to see the price move higher to increase bullish bets to new highs.
Nasdaq Composite Technical Analysis – 1 Hour Timeframe
Nasdaq Composite 1 hour
On the hourly chart, we can see that yesterday’s price broke above the counter-trend line and triggered a stronger rally as buyers more aggressively rushed to new highs. From a risk management perspective, buyers will have a better risk to reward setup around the 16340 level where they will find the confluence of the blue 8 moving average and the 38.2% Fibonacci retracement level. Sellers, on the other hand, will want to see the price decline to increase bearish bets to the 15929 level.
Events to come
Today we wrap up the week with the University of Michigan Consumer Sentiment Survey.
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