. Daily Index Analysis - Amid S&P 500's Market Volatility, Optimism Grows as Futures Stabilize

Daily Index Analysis – Amid S&P 500’s Market Volatility, Optimism Grows as Futures Stabilize

Daily Index Analysis – Amid S&P 500’s Market Volatility, Optimism Grows as Futures Stabilize

17 Oct 2023

Introduction:

In the Indices Market, Asian stocks made a recovery, with a particular focus on the Federal Reserve and China. Notably, the Nikkei 225 in Japan surged by 1.20%, while Mideast tensions drew attention in Europe, where mining boosts lifted European shares. Wall Street also closed higher on Monday due to optimism surrounding the start of the earnings season, although the ongoing Middle East situation remained a point of focus for investors.

Market In Focus for today – S&P 500

S&P 500 bears take a breather as futures positioning points to stabilization.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4389.42 | Positive Crossover | Bullish
  • MA 20: 4375.61 | Positive Crossover | Bullish
  • MA 50: 4371.19 | Positive Crossover | Bullish

Simple:

  • MA 5: 4387.22 | Positive Crossover | Bullish
  • MA 20: 4381.18| Positive Crossover | Bullish
  • MA 50: 4343.42 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.26 | Bullish Zone | Buy

Stochastic Oscillator: 61.9 | Buy Zone | Positive

Resistance And Support Levels:

  • R1: 4404.50 | R2: 4507.69
  • S1: 4349.47| S2: 4264.16

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 4427.89 | Take Profit: 4507.69 | Stop Loss: 4385.24.

Elsewhere in the Indices Market

Asian stocks recovers lost ground with Fed and China in focus.

The Shanghai composite is up at 0.32%. Overall, the Singapore MSCI up 0.67% to 284.15. Over in Hong Kong, the Hang Seng Index down up 0.75% to 17,773.34. In Japan, the Nikkei 225 up 1.20% to 32,040.29, while the Topix index was up 0.82% to 2,292.08. South Korea’s Kospi up 0.98% to 2,460.17. Australia S&P/ASX 200 up 0.42% to, 7,056.10.

Mideast tension draws investors’ attention as European shares jump on a mining boost.

The DAX futures contract in Germany traded 0.20 lower, CAC 40 futures in France down 0.12% to 7,013.64 and the UK 100 futures contract in the U.K. up 0.38% to 7,659.63.

Wall Street ends up on earnings optimism, but attention is still focused on the Middle East.

Due to investors’ optimism around the start of the earnings season, major U.S. stock indexes closed the day considerably higher on Monday. Small-cap and transportation companies also saw strong gains.

Indexes: Dow up 0.9%, S&P 500- up 0.11%, Nasdaq up 1.2%.

Corporate News:

Netflix Inc (NFLX) up 1.45% at 360.82, Tesla Inc. (TSLA) up 1.12% at 253.92, Walmart Inc. (WMT) up 0.86% at 161.21. Goldman Sachs Group Inc (GS) up 1.65% at 314.39, Morgan Stanley (MS) up 1.21% at 78.73.

Key Economic Events & Data Release Today:

(NZD) CPI (QoQ) (Q3) Actual 1.8%, Forecast 2.0%, Previous 1.1% at 03:15.

(AUD) RBA Meeting Minutes at 06:00.

(GBP) Average Earning Index+Bonus (Aug) Actual 8.1%, Forecast 8.3%, Previous 8.5% at 11:30.

(USD) Core Retail Sales (MoM) (Sep) Forecast 0.2%, Previous 0.6% at 18:00.

(USD) Retail Sales (MoM) (Sep) Forecast 0.3%, Previous 0.6% at 18:00.

(CAD) Core CPI (MoM) (Sep) Previous 0.1% at 18:00.