Yesterday’s extension of the Nasdaq Composite’s rally followed the release of economic data that presented both favorable and unfavorable aspects. While news on the inflation front was encouraging, the labor market presented a concerning picture. The market’s primary focus was on the diminished likelihood of a more hawkish interest rate hike path, which sparked a relief rally. The daily chart shows that the Nasdaq Composite extended its rally yesterday, eventually closing the gap with the blue 8 as the market regained its balance after last week’s selloff. The 38.2% level and moving average provide potential support, while sellers may aim to enter around the Fibonacci level for a potential drop. Buyers, on the other hand, seek a break above the resistance to increase bullish momentum. On the 4-hour chart, sellers will find a favorable risk-to-reward setup around the 15929 resistance, where the red 21 moving average and 50% Fibonacci retracement level converge. Breaking above this zone would strengthen bullish bets for the buyers. The 1-hour chart reveals a minor trendline defining the bullish momentum, with the blue 8 moving average providing additional support. Buyers are expected to rely on the trendline to continue bidding the market up towards the 15929 resistance. Conversely, sellers aim to break below the trendline to increase bearish bets for new lows. It is important to note that the upcoming US Q1 GDP and US Jobless Claims figures, as well as the US PCE report on Friday, have the potential to influence market sentiment and price action.
Nasdaq Composite Extends Rally on Mixed Economic Data
