. Daily Index Analysis - Asian Tumble, Record Highs, European Caution.

Daily Index Analysis – Asian Tumble, Record Highs, European Caution.

Daily Index Analysis – Asian Tumble, Record Highs, European Caution.

18 Dec 2023

Introduction:

In the global indices market, Asian stocks decline as the US Federal Reserve signals pushback. Meanwhile, European stocks slipped ahead of the German Ifo report, emphasizing concerns about upcoming inflation data. US stock futures, however, show a modest increase following seven weeks of consecutive gains.

Market In Focus for today – S&P 500

On Monday morning, U.S. stock futures showed a slight increase following the seventh consecutive week of gains for the three major averages. The S&P 500 futures advanced 0.16%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4767.47 | Positive Crossover | Bullish
  • MA 20: 4696.85 | Positive Crossover | Bullish
  • MA 50: 4624.57 | Positive Crossover | Bullish

Simple:

  • MA 5: 4775.92 | Positive Crossover | Bullish
  • MA 20: 4678.88| Positive Crossover | Bullish
  • MA 50: 4613.74 | Positive Crossover | Bullish

RSI (Relative Strength Index): 77.44| Buy Zone| Bullish

Stochastic Oscillator: 78.83|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4788.52 | R2: 4885.05
  • S1: 4691.99| S2: 4600.06

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit: 4691.99 | Take Profit: 4781.63| Stop Loss: 4634.54.

DOW JONES:

The Dow Jones Industrial Average recorded a new intraday high. Futures tied to Dow industrials added 40 points or 0.11%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37623.25 | Positive Crossover | Bullish
  • MA 20: 37033.32 | Positive Crossover | Bullish
  • MA 50: 36351.47 | Positive Crossover | Bullish

Simple:

  • MA 5: 37686.05 | Positive Crossover | Bullish
  • MA 20: 36883.08| Positive Crossover | Bullish
  • MA 50: 36251.07| Positive Crossover | Bullish

RSI (Relative Strength Index): 83.56| Buy Zone| Bullish

Stochastic Oscillator: 79.97|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 37762.97 | R2: 38467.15
  • S1: 36688.17| S2: 35780.15

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 36743.76 | Take Profit: 37614.72| Stop Loss: 36150.77.

FTSE 100:

On Monday, the FTSE 100 in the UK made gains, propelled by the increase in value of significant energy stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7612.77 | Positive Crossover | Bearish
  • MA 20: 7590.30 | Positive Crossover | Bullish
  • MA 50: 7543.88 | Positive Crossover | Bullish

Simple:

  • MA 5: 7614.07 | Positive Crossover | Bullish
  • MA 20: 7589.88| Positive Crossover | Bullish
  • MA 50: 7526.25 | Positive Crossover | Bullish

RSI (Relative Strength Index): 57.16| Buy Zone| Bullish

Stochastic Oscillator: 12.16|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 7617.6 | R2: 7753.1
  • S1: 7529.1| S2: 7423.6

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: STOP BUY: 7647.7 | Take Profit: 7753.1| Stop Loss: 7587.4.

CAC 40:

European stock markets experienced mostly downward movement on Monday, commencing the second-to-last week of the year in a restrained fashion. The CAC 40 in France traded down 0.5%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7597.59 | Positive Crossover | Bullish
  • MA 20: 7551.13 | Positive Crossover | Bullish
  • MA 50: 7443.70 | Positive Crossover | Bullish

Simple:

  • MA 5: 7595.09 | Positive Crossover | Bullish
  • MA 20: 7563.47| Positive Crossover | Bullish
  • MA 50: 7422.82 | Positive Crossover | Bullish

RSI (Relative Strength Index): 62.93| Buy Zone| Bullish

Stochastic Oscillator: 19.04|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 7658.2 | R2: 7783.9
  • S1: 7513.6| S2: 7381.6

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 7526.2 | Take Profit: 7658.2| Stop Loss: 7431.9.

Elsewhere in the Indices Market:

Asian stocks declined in the early trading session after the US Fed pushback.

The Shanghai composite is down at 0.40%. Overall, the Singapore MSCI is down 0.60% to 273.40. Over in Hong Kong, the Hang Seng Index down 0.97% to 16,629.23. In Japan, the Nikkei 225 was down 0.64% to 32,758.98, while the Topix index was down 0.66% to 2,316.86. South Korea’s Kospi up 0.13% to 2,566.86. Australia S&P/ASX 200 is down 0.22% to, 7,426.40.

European stocks slip in anticipation of the German Ifo, with a particular focus on upcoming inflation data.

The DAX futures contract in Germany traded 0.23 lower, CAC 40 futures in France up 0.47% to 7,561.19 and the UK 100 futures contract in the U.K. up 0.21% to 7,592.48.

US Stock futures are showing a slight increase following seven consecutive weeks of gains in major averages.

Monday morning saw a marginal uptick in U.S. stock futures following the seventh consecutive week of gains for the three major averages.

Indexes: Dow up 0.10%, S&P 500- down 0.18%, Nasdaq up 0.30%.

Corporate News:

Netflix, Inc. (NFLX) is up 0.47% at 472.06, Tesla, Inc. (TSLA) is up 0.98% at 253.50, and Apple Inc. (AAPL) is down 0.27% at 197.57. Goldman Sachs Group Inc (GS) is down 0.77% at 380.51, and Morgan Stanley (MS) is up 0.59% at 91.58.

Key Economic Events & Data Release Today:

(EUR) German Ifo Business Climate Index (Dec) Actual 86.4, Forecast 87.8, Previous 85.2 at 14:30.

(CAD) New House Price Index (MoM) (Nov) Forecast 0.1%, Previous 0.0% at 19:00.