Nasdaq Breaks Above Key Level Ahead of Powell

Nasdaq Winning Streak ContinuesIf the Nasdaq ends today in the green, that will mark nine consecutive days of gains: the longest winning streak in the index for over two years. The rally comes amidst a drop in US yields on the back of last week’s worse-than-forecast US jobs data. With all three measures worse than forecast, the market dialled in its near-term Fed rate hike projections. Against this backdrop, risk assets (including the Nasdaq) have performed very well. Indeed, even with USD improving in recent days, the index has remained well bid.Fed on WatchLooking ahead, the focus through today and the rest of the week will be on incoming Fed comments, including Fed’s Powell who speaks today and tomorrow. Given the more hawkish sentiment we’ve heard from some Fed members this week, the Nasdaq rally is at risk of stalling if Powell is seen reinforcing this hawkish view.  However, if Powell is seen striking a less hawkish tone or even downplaying rate hike probabilities, this should help drive the Nasdaq higher through the end of the week.Technical ViewsNasdaqThe rally in the index this week has seen price breaking back above the 15177.5 level and the bear channel top. This is an important technical break and although price is currently being held up at the retest of the broken bull channel, the focus remains on further upside while the 15177.5 level holds. Above, 16010.4 is the key objective for bulls near-term, signalling a continuation of the overall 2023 bull trend.