Nasdaq Technical Analysis: The compression points to big moves once we get a breakout
FUNDAMENTAL
OVERVIEW
The Nasdaq continues to
consolidate inside a rising wedge as traders await new catalysts and a breakout
on either side. The market maintains a bullish bias amid strengthening US economy
and the Fed’s dovish reaction function.
Yesterday, we got a brief drop
following the news of the US Department of Justice subpoenaing
the Federal Reserve.
The market saw the move as another attack against Fed independence amid Trump’s
calls to lower interest rates faster.
A potential loss of Fed
independence increases the risk of uncontrolled inflation in the future and eventually
stagflation. The probability of the loss of Fed independence though remains
very low as the consequences would be too big not only for the US but…
