Technical Analysis:
Nasdaq is currently trading around 18660, During New york session we want price to dip towards 18590 or below that and then we can look for buying opportunities from below. We can look for confirmation on 1min or 5min time frame for longs.
Fundamentals:
Wall Street was set for a higher open on Monday as indexes add to their recovery from a hammering early last week, with investors gearing up for a deluge of data including U.S. consumer prices.
Both the S&P 500 SPX and the Nasdaq Composite IXIC recouped most of their losses by the end of last week, after the benchmark index suffered its biggest one-day percentage drop in nearly two years on fears of recession and the unraveling of currency carry trade positions involving the yen.
Investors are likely to be on edge until Wednesday's U.S. consumer price index (CPI) reading, which is expected to show headline inflation accelerated 0.2% in July on a monthly basis, but remain unchanged at 3% on a year-on-year basis.
Money markets are evenly split between a 50- and a 25-basis-point (bps) cut in U.S. interest rates in September, expecting a total easing of 100 bps by the end 2024, according to CME's FedWatch Tool.
Figures for July U.S. retail sales on Thursday are likely to show marginal growth, and investors expect that any weakness in the data could reignite fears of a consumer slowdown and a potential recession.
Earnings reports from Walmart WMT and Home Depot HD, due later this week, will also be crucial for clues on consumer spending in the world's largest economy.
"If inflationary data proves more sticky then that would lead to assumptions. The market will have to pull back some anticipation of a really aggressive Fed and that would increase volatility as well," said Keith Buchanan, senior portfolio manager at GLOBALT Investments.
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