FundamentalOverview

The Nasdaq is approachingthe all-time highs after a strong rally triggered by the benign US PPI and theTrump’s reciprocal tariffs announcement.

In fact, despite a higherthan expected US PPI report, the details that feed into the CorePCE index, which is what the Fed focuses on, were all very soft. That helped tobring the early estimates down to more benign levels. The Core PCE Y/Y is nowprojected to fall to 2.6% vs. 2.8% in the prior month. That’s good news for theFed.

The bullish momentumincreased eventually as the Trump’s tariffs saga came to an end. In fact, theUS President announced his reciprocal tariffs that could go into effect in Aprilbut the overall tone of it wasn’t aggressive and sounded a lot like the startof a negotiating process to bring tariffs to a fair level for everyone.

We don’t have much on theagenda this week except the Flash US PMIs on Friday, but the path of leastresistance remains to the upside as long as the disinflationary processcontinues without any growth scare.

NasdaqTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that the Nasdaq broke above the key 22111 resistance with the buyers now targeting a newall-time high. The sellers will likely step in around the all-time high levelto position for a pullback into the 21000 level, while the buyers will look fora break higher to increase the bullish bets into new highs.

Nasdaq TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we have an upward trendline defining the bullish momentum. Ifthe price were to pull back into it, we can expect the buyers to lean on thetrendline with a defined risk below it to position for a rally into a newall-time high. The sellers, on the other hand, will want to see the pricebreaking lower to increase the bearish bets into the 21000 level next.

Nasdaq TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee that from a risk management perspective, the buyers will have a better riskto reward setup around the 22111 level. The sellers, on the other hand, willlook for a break lower to target a drop into the trendline. The red linesdefine the average daily range for today.

Upcoming Catalysts

Today we have the FOMC Meeting Minutes.Tomorrow, we get the latest US Jobless Claims figures, while on Friday weconclude with the US Flash PMIs.