. Daily Index Analysis - Critical Investment Strategies for Navigating Volatility in the S&P 500

Daily Index Analysis – Critical Investment Strategies for Navigating Volatility in the S&P 500

Daily Index Analysis – Critical Investment Strategies for Navigating Volatility in the S&P 500

13 Oct 2023

Introduction:

In the ever-fluctuating indices market, Asian shares take a sharp dip driven by renewed concerns over potential rate hikes, triggered by robust US price data. Across the region, stock markets grapple with declines, with Shanghai, Singapore, Hong Kong, Japan, South Korea, and Australia all witnessing losses. Meanwhile, European stocks, after an initial rise, are starting to trim gains in the wake of US CPI data. On Wall Street, investors grapple with the impact of inflation data and surging Treasury yields, culminating in a decline in major indexes. These global market moves paint a vivid picture of economic sentiment and financial volatility.

Market In Focus for today – S&P 500

Following the release of the data, the S&P 500 twisted between red and green all morning. After a lacklustre demand-driven 30-year U.S. Treasury auction at 1 p.m. EDT (1700 GMT), it strongly turned lower.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4384.36 | Negative Crossover | Bearish
  • MA 20: 4366.26 | Positive Crossover | Bullish
  • MA 50: 4367.07 | Negative Crossover | Bearish

Simple:

  • MA 5: 4339.52 | Negative Crossover | Bearish
  • MA 20: 4353.15| Positive Crossover | Bullish
  • MA 50: 4342.52 | Positive Crossover | Bullish

RSI (Relative Strength Index): 51.4 | Buy Zone | Bullish

Stochastic Oscillator: 42.15 | Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4424.34 | R2: 4506.37
  • S1: 4357.61| S2: 4259.65

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 4324.06 | Take Profit: 4259.65 | Stop Loss: 4368.14.

Elsewhere in the Indices Market

Asian markets share drop sharply as US price data revives rate hike jitters.

The Shanghai composite is down at 0.64%. Overall, the Singapore MSCI down 1.58% to 282.80. Over in Hong Kong, the Hang Seng Index down by 2.33% to 17,813.45. In Japan, the Nikkei 225 down 0.55% to 32,315.99, while the Topix index was down 1.44% to 2,308.75. South Korea’s Kospi down 0.95% to 2,456.15. Australia S&P/ASX 200 down 0.56% to, 7,051.00.

Following US CPI data, European stocks trim early gains.

The DAX futures contract in Germany traded 0.92 lower, CAC 40 futures in France down 0.84% to 7,045.11 and the UK 100 futures contract in the U.K. down 0.53% to 7,604.35.

Wall Street declines as investors digest inflation data and Treasury yields increase.

After a U.S. Treasury auction brought bond yields higher while investors were already processing data showing consumer prices increased more than expected in September, Wall Street’s major indexes ended the day lower on Thursday.

Indexes: Dow down 0.51%, S&P 500- down 0.62%, Nasdaq down 0.63%.

Corporate News:

Amazon Inc (AMZN) up 0.38% at 132.33, Tesla Inc. (TSLA) down 1.57% at 258.87, Nike Inc. (NKE) up 0.61% at 99.25. Goldman Sachs Group Inc (GS) down 1.01% at 309.85, Morgan Stanley (MS) down 1.38% at 77.81.

Key Economic Events & Data Release Today:

(NZD) Business NZ PMI (Sep) Actual 45.3, Previous 46.1 at 03:00.

(CNY) CPI (MoM) (Sep) Actual 0.2%, Forecast 0.3%, Previous 0.3% at 07:00.

(GBP) BoE Gov Bailey Speaks at 13:30.

(EUR) Industrial Production (MoM) (Aug) Forecast 0.1%, Previous –1.1% at 14:30.

(EUR) ECB President Lagarde Speaks at 18:30.