Table of contents
- NASDAQ - The price trades below the 150-day Exponential Moving Average, and the stochastic oscillator is also crossed over downwards
NASDAQ may positevely react to lower-than-expected PCE Price Index print
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The NASDAQ was again the best-performing index during yesterday’s US trading session. The Asset was the only US index that did not decline to a lower price and ended the day significantly higher than other indices. The NASDAQ increased by 0.90% during the US session, the SNP500 by 0.50, and the Dow Jones by 0.30%. However, the SNP500 and DowJones did experience significant declines at some point.
NASDAQ 4-Hour Chart on February 24th
NASDAQ - The price trades below the 150-day Exponential Moving Average, and the stochastic oscillator is also crossed over downwards
The price of the NASDAQ is declining this morning by 0.32% and is still within a downward trend pattern. Despite yesterday's bullish price movement, the asset still forms lower lows and lower highs on the larger timeframes. The price trades below the 150-day Exponential Moving Average, and the stochastic oscillator is also crossed over downwards. Both indicators point towards further price pressure.
The price will also experience higher volatility this afternoon during the release of the PCE Price Index. If the figure is lower than expected, the NASDAQ may positively react. However, a higher figure will certainly increase speculation of the Fed’s terminal rate increasing closer to 5.75-6.00%.
You're reading Part III of the weekly comment by NAGA:
Part I: Higher Volatility Expected for NASDAQ During PCE Price Index Release| FXMAG.COM
Summary of all three parts:
- Indices reach a new monthly low except for the NASDAQ. The NASDAQ was the best-performing index of the day but is again declining this morning.
- The US saw its GDP figure grow at a slower pace than previously expected. The GDP figure read 2.7% instead of 2.9%.
- Traders turn their attention to this afternoon’s PCE Price Index. A higher PCE Price Index will further support stronger interest rate hikes
- Gold comes under pressure from a more expensive US Dollar, higher interest rates, and higher bond yields.
