Nasdaq Composite: Agglutinated by 13,000 points

(BFM Bourse) – The Nasdaq Composite symbolically managed to close Thursday’s session in the positive (+0.21% to 12,965 points), although the level of participation was insignificant, at the lowest part of August and between two important monetary meetings (minutes and the Jackson Hole Symposium). On this last point, it will be a great opportunity, especially on Friday with J. Powell’s speech, to clarify the growth estimates in Federal funds, 50 or 75 bps. Scenario 50 would allow softening the slope of the monetary policy tightening process, and therefore support the rating of growth stocks, the family of which the index is of interest to us here, is widely represented. This issue of the brutality of the rate of climb is significant.

St. Louis Fed President James Bullard told the Wall Street Journal on Thursday that he favors a 75 basis point rate hike in September. Neil Kashakari, who heads the Federal Reserve Bank of Minneapolis, not particularly known for his hawkish nature, even supported the scenario of a range of key rates to 4% this year and an extension in 2023 towards 4.5%.

Investors are also analyzing the challenges of the new climate law signed by Joe Biden, which is in the final stages of its legislative journey. It’s “the most significant federal climate action legislation in US history,” according to Jennifer Boscardin-Ching, client manager at Pictet Asset Management, who details the package of “$369 billion in energy and climate programs over the next ten years.” years”.

“The expansion of renewable energy tax credits will continue to support broad-based growth in the renewable energy sector in the United States, encouraging an acceleration of the transition to renewable energy,” while “large greenhouse gas emitters will be penalized by levying an excessive tax on methane emissions from oil and gas facilities above a certain threshold.” This will increase the competitiveness of the renewable energy industry compared to fossil fuels.”

Active files in the renewable energy sector that can be found in the Composite have seen success in recent weeks, such as Plug Power, SunRun, Beam Global, First Solar or Canadian Solar.

On September 20 and 21, the Fed will hold a meeting of its monetary policy committee.

There are no clear guidelines on the statistical agenda this Friday.

MAIN GRAPHIC ELEMENTS

At this stage of price growth, starting on June 17, a “breathing” phase is expected until the 20-day moving average (dark blue), the intersection of which with the 50-day counterpart (orange) at a significant angle, released short-term growth potential. In the immediate future, the doji traced on Tuesday the 16th invites you to slow down immediately. A neutral opinion was immediately offered on the flagship index of technology stocks from the American side.

FORECAST

Based on the key chart factors we have identified, our view is neutral on the Nasdaq Composite in the short term.

We will pay attention to the fact that the crossing of 13020.00 points will restore tension in the purchase. Whereas a break of 12140.00 points will restore selling pressure.

CHART IN DAILY DATA

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