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June 02, 2023
Yesterday at a glance: the Nasdaq rallied 164.72 points and maintained the 13,100 level.
The Nasdaq upside coincides with further encouraging market factors as United States Crude Oil Inventories improved upon its previous reading of -12.46 million with a new data release of 4.49 million. Data for United States Initial Jobless Claims released yesterday at 12:30 UTC is better than expected with 232,000, but worse than previous figure of 230,000.
At the same time, United States ISM Manufacturing PMI (May) came out at 46.9, while a consensus of analysts was expecting 47.
Chart analysis suggests although Nasdaq is appreciating today after rising as high as 13,142, price action is now slowing and consolidating around 93 points below the 13,200 resistance level. Trend-focused traders would be interested to note that the Nasdaq made an initial breakout above its 3 day Simple Moving Average at 12,976, a potential indicator of a newly emerging bullish phase. Momentum evaluation shows that the Relative Strength Index indicates the Nasdaq is currently 'overbought' which suggests new gains will be harder to obtain. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at 13,200, thereby suggesting that the Nasdaq is becoming overvalued.
Overall, while the Nasdaq has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Other markets are also showing gains as Hang Seng is trading around 18,800 after ending yesterday's session at 18,217 (up 3.12% today). DAX moves up 1.21% yesterday and closed at 15,664. S&P 500 goes up 0.99% yesterday and closed at 4,179.83.
Also worthy of note, United States Non Farm Payrolls projected to decline to 180,000 while previous data was 253,000; data will be released today at 12:30 UTC. Today at 12:30 UTC data for United States Average Hourly Earnings will be released, with an expected decline to 0.4% from the preceding figure of 0.5%. Today at 12:30 UTC data for United States Unemployment Rate will be released, with an expected decline to 3.5 from the preceding figure of 3.4.
The index has been trending positively for about 2 months. The Nasdaq now trading 15.35% above its 3-month low of 10,200.
