. Daily Index Analysis - Dow Futures Lag as Nvidia Soars, S&P 500 Rises

Daily Index Analysis – Dow Futures Lag as Nvidia Soars, S&P 500 Rises

Daily Index Analysis – Dow Futures Lag as Nvidia Soars, S&P 500 Rises

23 May 2024

Introduction:

Global markets faced mixed performances: Asian stocks weakened with cautious rate cut sentiment, European markets edged higher as investors assessed UK inflation and Eurozone data, and U.S. stocks dipped after the Fed’s May meeting minutes signalled persistent inflation concerns, although Nvidia shares rose after hours.

Market In Focus for today – Dow Jones

Dow futures lag tech gains as Nvidia shares soar.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39906.66 | Negative Crossover | Bearish
  • MA 20: 39875.49 | Negative Crossover | Bearish
  • MA 50: 39560.87 | Positive Crossover | Bullish

Simple:

  • MA 5: 39931.01 | Negative Crossover | Bearish
  • MA 20: 39986.77| Negative Crossover | Bearish
  • MA 50: 39494.69 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.85| Bullish Zone| Positive


Stochastic Oscillator: 13.68| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 40014.79 | R2: 40355.25
  • S1: 39546.66| S2: 39110.44


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Buy Limit: 39663.69 | Take Profit: 40110.54| Stop Loss: 39408.35.

S&P 500:

S&P 500 rises as Nvidia results boost chip stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5342.21 | Positive Crossover | Bullish
  • MA 20: 5325.15 | Positive Crossover | Bullish
  • MA 50: 5273.13 | Positive Crossover | Bullish

Simple:

  • MA 5: 5339.89 | Positive Crossover | Bullish
  • MA 20: 5333.67| Positive Crossover | Bullish
  • MA 50: 5263.25 | Positive Crossover | Bullish

RSI (Relative Strength Index): 73.1| Bullish Zone| Positive


Stochastic Oscillator: 57.61 | Buying Zone | Positive

Resistance And Support Levels:

  • R1: 5370.20 | R2: 5420.73
  • S1: 5299.16| S2: 5212.12


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5297.66 | Take Profit: 5368.20| Stop Loss: 5260.14.

FTSE 100:

FTSE 100 falls as general election call and weak economic data weigh on market.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8391.01 | Negative Crossover | Bearish
  • MA 20: 8397.57 | Negative Crossover | Bearish
  • MA 50: 8335.79 | Positive Crossover | Bullish

Simple:

  • MA 5: 8393.69 | Negative Crossover | Bearish
  • MA 20: 8416.97| Negative Crossover | Bearish
  • MA 50: 8352.62 | Positive Crossover | Bullish

RSI (Relative Strength Index): 42.85| Neutral Zone| Neutral


Stochastic Oscillator: 9.27| Selling Zone | Negative

Resistance And Support Levels:

  • R1: 8474.7 | R2: 8550.00
  • S1: 8336.3| S2: 8206.4


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 8403.32 | Take Profit: 8320.71| Stop Loss: 8449.94.

Euro Stoxx 50:

European markets edged higher on Thursday as traders absorbed the minutes from the latest U.S. Federal Reserve meeting.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5049.36 | Negative Crossover | Bearish
  • MA 20: 5053.63 | Positive Crossover | Bullish
  • MA 50: 5039.83 | Positive Crossover | Bullish

Simple:

  • MA 5: 5048.08 | Negative Crossover | Bearish
  • MA 20: 5063.85| Positive Crossover | Bullish
  • MA 50: 5029.52 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.11| Buy Zone| Bullish


Stochastic Oscillator: 36.4| Selling Zone | Positive

Resistance And Support Levels:

  • R1: 5093 | R2: 5141
  • S1: 4991| S2: 4906


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 5070 | Take Profit: 4934| Stop Loss: 5120.


Elsewhere in the Indices Market:


Asian stocks weaken amid a cautious stance on rate cuts.

The Shanghai composite is down at 1.33%. Overall, the Singapore MSCI up 0.57% to 312.12. Over in Hong Kong, the Hang Seng Index down 1.70% to 18,868.71. In Japan, the Nikkei 225 up 1.26% to 39,103.22, while the Topix index was up 0.64% to 2754.75. South Korea’s Kospi down 0.06% to 2,721.81. Australia S&P/ASX 200 down 0.46% to, 7,811.80.

European stocks edge higher as investors evaluate UK inflation and eurozone data.

The DAX futures contract in Germany traded 0.28 higher, CAC 40 futures in France up 0.31% to 8,116.89 and the UK 100 futures contract in the U.K. down 0.06% to 8,364.90.

US stocks decline following Fed minutes release; Nvidia shares rise after hours.

U.S. stocks dipped as the minutes from the Federal Reserve’s May meeting highlighted concerns over persistent inflation, suggesting that interest rate cuts may not be imminent.

Indexes: Dow up 0.17%, S&P 500- down 0.27%, Nasdaq down 0.18%.


Corporate News:

Netflix, Inc. (NFLX) down 1.56% at 640.47, Tesla, Inc (TSLA) down 3.48% at 180.11, Apple Inc. (AAPL) down 0.75% at 190.90. Goldman Sachs Group Inc (GS) down 1.71% at 462.38, Morgan Stanley (MS) down 0.78% at 100.74.



Key Economic Events & Data Release Today:

(EUR) German Manufacturing PMI Forecast 43.4, Previous 42.5 at 13:00.

(GBP) Manufacturing PMI Forecast 49.5, Previous 49.1 at 14:00.

(GBP) Service PMI Forecast 54.7, Previous 55.0 at 14:00.

(USD) Initial Jobless Claims Forecast 220K, Previous 222K at 08:30.

(USD) Building Permits Forecast 1.440M, Previous 1.467M at 08:30.

(GBP) Manufacturing PMI (May) Forecast 50.0, Previous 51.3 at 09:45.

(USD) New Home Sales (Apr) Forecast 677K, Previous 693K at 10:00.