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Wall Street downplays economic data and the Dow Jones sets records

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Wall street registers a slight rebound at this time on Wednesday despite the fact that several economic data have been known that have not met market expectations. The slight correction this Wednesday comes after the main New York indices closed with a mixed sign on Tuesday, in a day with falls close to 2% for the Nasdaq. Chipmakers fell and Manzana Y Amazon they came down hard through the renewed geopolitical tensions between China and Taiwan and the slip of the Secretary of the Treasury, Janet Yellen, who acknowledged that "it may be that interest rates have to go up somewhat to make sure our economy doesn't overheat. "

"Yellen later said that an increase in interest rates it was not something he was predicting or anticipating and that inflation was not a problemBut the damage was done, "says Jeffrey Halley, an analyst at Oanda.

In the economic scene, several very relevant data have been published. For him employment data of the ADP consultancy, despite the fact that the consensus anticipates the creation of 810,000 jobs, the figure has remained at 742,000.

Analysts at Pantheon Macroeconomics expect that the largest rebound occurs between May and July with "the entire economy completely open"

The ISM data for the services sector for April, one of the most important activity indicators, has not been very positive either, since consumption accounts for two-thirds of American GDP. There has been a drop to 62.7 from 63.7 previously, a disappointing figure considering that a rebound is expected to 64.3.

Both data have been worse than expected, but they continue to show a very strong recovery in the economy. This is what they believe from Barclays, they point out that the data of the services sector may be due to a correction of the distortions of the February cold wave. "April's impression is very strong however you measure it, with the reading still at its second highest and accompanied by an even more robust 64.7 impression for Markit's service sector PMI, "they explain.

At the corporate level, Facebook shares have experienced a significant rebound on the market after it became known that lon account of the former president of the United States, Donald Trump will remain suspended. His profile was closed at the beginning of January, coinciding with the assault on the Capitol, after he used it to approve the incidents instead of condemning them.

THE NASDAQ FALLS "WITHIN NORMAL PRAMETERS"

The technology has been close to 5% in just four sessions and the lows of this Tuesday (13,400) manage to stop the falls on the doorstep of the important support level of 13,300 points, before resistance.

"It is still early to say that we have seen a bottom in the technology index. A short-term bottom, as the bottom trend is clearly bullish without any doubts. The Nasdaq 100 managed to bounce 100 points this Tuesday before checking the strength of the support at 13,300 points, previously resistance ", explains José María Rodríguez, technical analyst at ForexNews.online.

"With yesterday's fall, the price partially filled the bullish gap of the April 5 session at 13,330 points. From which it follows that Important levels of support converge in the range of 13,300-13,330. Above, on the resistance side, we have yesterday's downward gap at 13,800 points, as well as the recent historical highs at 14,073 points, "concludes the expert.

SELL IN MAY AND GO AWAY?

At the strategic level, analysts are cautious about the beginning of May and the possibility that the famous seasonal pattern of the 'Sell in May and go away' (sell in May and do not return to the stock exchanges until October).

This caution is given by the moment in which the indices are found, that accumulate in the year a "spectacular profitability", So it is "market consolidation very likely after such a strong streak".

So they believe Alexander Dominicus, Manager of Mainfirst, or François Rimeu, Senior Strategist at La François AM, who answers with a "yes, without a doubt", to the question of if a correction could be seen in May.

Berjamin Melman, manager of Edmond de Rothschild, acknowledges that the risk of a return in volatility this month "is greater than usual"precisely because of the current strong positioning in equities.

By technical analysis, "we will not have the slightest sign of weakness until we have a weekly close below the low of the previous weekly candle. And in the meantime, there is nothing to worry about. As the first major support zone of the S&P 500, we have the range of 3,950-3,980 points; and above we have nothing, "says JM. Rodríguez, an analyst at Bolsamanía.

In other markets, oil West texas rises 1.2% to $ 66.50, while the euro it depreciates 0.16% and changes to $ 1.1996. In addition, the profitability of the 10-year American bond rises to 1.60% and the ounce of gold down 0.1% to $ 1,776. Finally, the bitcoin up 1% to $ 55,288.

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