market Analysis: Positive Momentum and Upcoming Economic Data

The market is experiencing a strong upward trend, evidenced by a third consecutive positive week (+1.54%), bringing the year-to-date gain to +26.69%. Major indices closed at their highest points following comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, where he signaled the possibility of future interest rate cuts.

This positive sentiment was especially strong in August, with Piazza Affari closing positively in 11 out of 15 sessions, resulting in a 5.67% increase. The FTSE MIB reached levels not seen since May 2007, with the Total Return index exceeding 114,400 points.

Next week, market focus will be on several key economic releases. On Wednesday at 10 pm,investors will be watching the quarterly earnings report,which could substantially impact the tech and semiconductor sectors,particularly the Nasdaq.Thursday at 2:30 pm will see the release of the US GDP (2nd estimate Q2), and on Friday at 2:30 pm, the PCE and Core PCE data will be published. As the Fed’s preferred inflation indicator, this data will heavily influence expectations regarding future rate adjustments.

given current high levels and overbought conditions in many stocks,a cautious approach is advised. It may be more prudent to wait for a short-term reversal or consolidation to identify lower-risk entry points.

Here are a few titles to watch in the next session:

One stock is demonstrating growing relative strength, closing the week up 5.92%. The price action confirms the formation of a triple bottom around €21.

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Another stock, after a period of underperformance, is showing promising signs of recovery, approaching resistance at €5.6. A close above this level woudl signal a potential reversal.

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A third stock is exhibiting a strong bullish signal with a long white candlestick, accompanied by increased volume and volatility, reaching new highs. Breaking thru the €31.65 area could attract further buying interest.

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bearish pressure continues on the market’s most-shorted stock. The image shows that strong hands are heavily shorting the stock, with 11 investors selling 9.72% of the company.

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