Stock markets face setback after oversold rally - Nasdaq in focus with AMD numbers and China concerns

Summary

After a comparatively small rally in the Nasdaq and other US indices the day before, the stock markets are now considered overbought. This is confirmed by the Relative Strength Index (RSI) on the 60 minute chart. The market will therefore expect a pullback in the stock markets rather than a continuation of yesterday's rally. The focus today is on AMD's numbers and a cautionary article on Nvidia that points to a possible decline in sales in China due to the Biden administration's actions. Furthermore, there were weak purchasing managers' indices from China and the Bank of Japan is pursuing a new monetary policy. The Fed is on the agenda on Wednesday, followed by Apple figures on Thursday and US labor market data on Friday.

Impact on the market

The fact that stock markets are considered overbought indicates a possible pullback. This could lead to a decline in stock prices. Additionally, the Wall Street Journal article could have a negative impact on Nvidia, as the company could lose sales in China due to the Biden administration's actions. Weak purchasing managers' indices from China could also contribute to deteriorating market sentiment. The Bank of Japan's new monetary policy could also have an impact on the market, depending on how it is interpreted by investors. The upcoming Fed meeting as well as the Apple figures and US labor market data could bring additional volatility to the stock market.

source

According to a report by finanzmarktwelt.de