Nasdaq Technical Analysis: Soft US data might finally take us back to all-time highs
KEY POINTS:
- US CPI came out much softer than expected, potentially giving the Fed a reason to cut earlier than expected
- The Fed’s dovish reaction function remains a tailwind for the stock market
- The Santa Claus rally might be starting, but traders will look for technical breaks to have more conviction
FUNDAMENTAL OVERVIEW
The US CPI yesterday surprised to the downside across the
board, but as we’ve seen with the NFP report, the market took the data with a pinch
of salt. The Nasdaq strengthened following the CPI release but eventually gave
back some of the gains as the bullish momentum faded.
It should also be noted
that we got the US Jobless Claims yesterday and the data was strong.
The Initial Claims remain around the same low levels we…
