Nasdaq wipes all of yesterday's gains after the release of retail sales data. The index spike on the news but soon after retraced, support at 14,920.

Taking a look at Nasdaq after the recent retail sales data. The data came in stronger than expected, suggesting that wage growth in the US continues and is robust. This also means that Americans are spending more which raises the question for the Fed regarding inflation and its target to bring it down to 2%. The US markets spiked on the news but now have turned the other way. Currently, the index is trading around 15,067. Looking at the daily interval, we can see support at 14,920 (upper trendline) and then at 14,866. This area highlighted by the oval is a key support zone, as a break below 14,866 could see the index fall as low as 14,233. Although, this would have to be analysed at the time. For the time being, the bias remains bearish unless we see consolidation along the upper trendline support on the chart. Looking at the technical indicators, MACD is strongly negative and the RSI keeps faltering as it now reads 41. FOMC minutes are due tomorrow at 19:00 GMT, until then volatility shouldn’t be drastic.