The good news on the economy continues to be
trumped by further tightening in financial conditions due to rising Treasury
yields, and the tensions in the Middle East increasing. In fact, on a
forward-looking basis, these events are likely to weigh on the economy further
down the road, which is not a good thing for the market. Yesterday, the US Jobless Claims beat
expectations once again but the Continuing Claims missed for a second time in a
row, which might be signalling that laid off people are finding it harder to
find another job fast.
Nasdaq Composite Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq
Composite broke down and it’s now at a key support around
the 13174 level. This is where we can expect the buyers to step in with a
defined risk below the level to position for a rally into the top trendline around
the 13700 level. The sellers, on the other hand, will want to see the price
breaking lower to increase the bearish bets into the 12274 level.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a
minor trendline adding an extra layer of confluence to the
13174 support level. This is likely to be a “break it or make it” moment for
the Nasdaq Composite as a break to the downside would open the door for much
lower prices.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that if we
were to get a bounce here, the sellers are likely to lean on the previous support now turned
resistance around the 13340 level where we can also
find the 50% Fibonacci
retracement level and the red 21 moving average. The
buyers will want to see the price breaking above that resistance zone as well
to invalidate the bearish setup and target the highs with more conviction.
This article was written by FL Contributors at www.forexlive.com. Source