Key points:
- Some Big Tech companies are providing insight into their balance sheets this week. The expectations are high. Disappointments could send markets south
- The highlight of the week is likely to be the Fed interest rate decision. However, the US Federal Reserve will probably keep its feet still and not touch the key interest rate
- The Nasdaq CAT AI, which lists 60 AI stocks, has reached a top. Could a correction be imminent? The classic markets such as the DAX would also be affected
- The DAX has recovered from the recent tariff dispute with the USA. Now lost ground must be regained
Will air soon escape from the AI bubble?
Concerns about an AI bubble have not gone away. However, the fear that it will burst does not play a major role at the moment. However, sooner or later air could be let out of the bladder, which wouldn’t be a problem. Rather, consolidation could be an opportunity to get started.
The Nasdaq CAT AI, in which 60 AI stocks are listed, has shown an impressive performance in the past few months. However, a double high has formed in the daily chart. And this reversal formation usually warns of a trend reversal. Rather, a slide below the uptrend line at currently 3,605 points and the exponential 50-day average line at 3,595 points could result in a correction towards the 23.6% Fibonacci level at 3,371 points. However, if the jump above the aforementioned double high of 3,795/3,800 points is successful, consolidation would first have to be shelved and the AI rally could then go into the next round.
