. Daily Index Analysis - Dow Jones and S&P 500 Poised For Gains

Daily Index Analysis – Dow Jones and S&P 500 Poised For Gains

Daily Index Analysis – Dow Jones and S&P 500 Poised For Gains

20 Jun 2024

Introduction:

Global stock market performance is mixed as Asian markets pause their rally and European indices rise ahead of key central bank decisions. The Shanghai Composite, Singapore MSCI, and Hang Seng Index declined, while the Nikkei 225 and Kospi gained. European stocks increased with the DAX, CAC 40, and UK 100 all trading higher. Meanwhile, U.S. stock futures advanced, driven by the tech sector, in anticipation of new employment and housing data.

Market In Focus for today – Dow Jones

Stock futures are edging higher on Thursday, positioning major indexes to continue their ascent after achieving new record finishes earlier in the week. The Dow is set to open up.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39200.98 | Positive Crossover | Positive
  • MA 20: 39098.34 | Positive Crossover | Positive
  • MA 50: 39016.51 | Positive Crossover | Positive

Simple:

  • MA 5: 39220.8 | Positive Crossover | Positive
  • MA 20: 39044.6| Positive Crossover | Positive
  • MA 50: 38852.19 | Positive Crossover | Positive

RSI (Relative Strength Index): 61.65| Buy Zone| Bullish


Stochastic Oscillator: 87.98| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 39356.97 | R2: 39770.40
  • S1: 39024.21| S2: 38651.12


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Limit Buy: 39397.31 | Take Profit: 39770.40| Stop Loss: 39175.47.

S&P 500:

Futures indicate the S&P 500 will be aiming for fresh record highs on Thursday, as investors return in high spirits from the Juneteenth holiday.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5549.16 | Positive Crossover | Bullish
  • MA 20: 5510.07 | Positive Crossover | Bullish
  • MA 50: 5431.45 | Positive Crossover | Bullish

Simple:

  • MA 5: 5553.64 | Positive Crossover | Bullish
  • MA 20: 5509.97| Positive Crossover | Bullish
  • MA 50: 5397.01 | Positive Crossover | Bullish

RSI (Relative Strength Index): 80.85|Buy Zone | Positive


Stochastic Oscillator: 93.05 | Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 5584.56 | R2: 5647.41
  • S1: 5483.98| S2: 5388.44


Overall Sentiment: Bullish| Market Direction: Buy


Trade Suggestion: Buy Limit : 5504.10 | Take Profit: 5584.56| Stop Loss: 5451.30.

FTSE 100:

FTSE 100 rises; U.K. shares show mixed performance at market open.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8204.82 | Positive Crossover | Bullish
  • MA 20: 8203.80 | Positive Crossover | Bullish
  • MA 50: 8228.12 | Negative Crossover | Bearish

Simple:

  • MA 5: 8195.12 | Positive Crossover | Bullish
  • MA 20: 8193.97| Positive Crossover | Bullish
  • MA 50: 8226.02 | Negative Crossover | Bearish

RSI (Relative Strength Index): 52.48| Buy Zone| Bullish


Stochastic Oscillator: 96.39| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 8269.0 | R2: 8379.6
  • S1: 8148.3| S2: 8050.3


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion: Sell Limit : 8246.4 | Take Profit: 8113.1| Stop Loss: 8352.0.

Euro Stoxx 50:

European equities showed gains on Thursday morning, with British investors anticipating the Bank of England’s policy rate decision ahead.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4907.81 | Positive Crossover | Bullish
  • MA 20: 4925.20 | Negative Crossover | Bearish
  • MA 50: 4964.47 | Negative Crossover | Bearish

Simple:

  • MA 5: 4901.04 | Positive Crossover | Bullish
  • MA 20: 4926.53| Negative Crossover | Bearish
  • MA 50: 4976.02 | Negative Crossover | Bearish

RSI (Relative Strength Index): 46.93| Neutral Zone| Neutral


Stochastic Oscillator: 82.82| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 4953 | R2: 5043
  • S1: 4837| S2: 4749


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion: Sell Limit : 4950 | Take Profit: 4835| Stop Loss: 4995.


Elsewhere in the Indices Market:

Asian stock rally takes breather as traders new signals.

The Shanghai composite is down at 0.42%. Overall, the Singapore MSCI down 0.58% to 311.10. Over in Hong Kong, the Hang Seng Index down 0.52% to 18,335.32. In Japan, the Nikkei 225 up 0.23% to 38,633.02, while the Topix index was down 0.11% to 2725.54. South Korea’s Kospi up 0.37% to 2,807.63. Australia S&P/ASX 200 down 0.39% to, 7,769.40.

European markets rise; Swiss National Bank cuts rates ahead of Bank of England decision.

The DAX futures contract in Germany traded 0.66 higher, CAC 40 futures in France up 0.81% to 7,631.32 and the UK 100 futures contract in the U.K. up 0.19% to 8,220.84.

US stock futures climb higher.

U.S. stock futures climbed on Thursday, led by the tech sector, ahead of upcoming employment and housing economic data releases.

Indexes: Dow up 0.06%, S&P 500- up 0.25%, Nasdaq up 0.03%.

Corporate News:

Netflix, Inc. (NFLX) up 1.46% at 685.67, Tesla, Inc (TSLA) down 1.38% at 184.86, Apple Inc. (AAPL) down 1.10% at 214.29. Goldman Sachs Group Inc (GS) up 1.61% at 457.43, Morgan Stanley (MS) up 0.55% at 97.57.



Key Economic Events & Data Release Today:

(CHF) SNB Interest Rate Decision (Q2) Forecast 1.50%, Previous 1.50% at 03:30.

(CHF) SNB Monetary Policy Assessment at 03:30.

(GBP) BoE Interest Rate Decision (Jun) Forecast 5.25%, Previous 5.25% at 07:00.

(GBP) BoE MPC Meeting Minutes at 07:00.

(USD) Building Permits (May) Forecast 1.450M, Previous 1.440M at 08:30.

(CAD) New Housing Price Index (MoM) (May) Forecast 0.2%, Previous 0.2% at 08:30.

(USD) Initial Jobless Claims Forecast 235K, Previous 242K at 08:30.

(USD) Crude Oil Inventories Forecast –2.800M, Previous 3.730M at 11:00.