. Daily Index Analysis - Dow Jones Declines Amid Inflation Expectations.

Daily Index Analysis – Dow Jones Declines Amid Inflation Expectations.

Daily Index Analysis – Dow Jones Declines Amid Inflation Expectations.

14 May 2024

Introduction:

Global markets experienced varied movements with Asian shares nearing 15-month highs, albeit with some declines in indices like the Shanghai composite. European stocks remained stable, while U.S. futures indicated little change as investors awaited crucial inflation reports.

Market In Focus for today – Dow Jones

Dow Jones Industrial Average declined in previous session, breaking an eight-day winning streak, as traders contended with increasing inflation expectations before the release of pivotal reports later in the week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39519.22 | Positive Crossover | Bullish
  • MA 20: 39329.18 | Positive Crossover | Bullish
  • MA 50: 39001.31 | Positive Crossover | Bullish

Simple:

  • MA 5: 39603.05 | Positive Crossover | Bullish
  • MA 20: 39323.37| Positive Crossover | Bullish
  • MA 50: 38815.36 | Positive Crossover | Bullish

RSI (Relative Strength Index): 68.61| Bullish Zone| Positive


Stochastic Oscillator: 31.78| Selling Zone | Negative

Resistance And Support Levels:

  • R1: 39770.08 | R2: 40153.10
  • S1: 39355.15| S2: 38865.74


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Buy Limit: 39035.97 | Take Profit: 39770.08| Stop Loss: 38599.75.

S&P 500:

The S&P 500 remains nearly unchanged as investors maintain caution in anticipation of inflation data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5239.01 | Negative Crossover | Bearish
  • MA 20: 5218.87 | Positive Crossover | Bullish
  • MA 50: 5180.44 | Positive Crossover | Bullish

Simple:

  • MA 5: 5245.35 | Negative Crossover | Bearish
  • MA 20: 5224.51| Positive Crossover | Bullish
  • MA 50: 5153.19 | Positive Crossover | Bullish

RSI (Relative Strength Index): 65.5 | Bullish Zone| Positive


Stochastic Oscillator: 24.78| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5265.00 | R2: 5332.77
  • S1: 5126.18| S2: 5033.88


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5183.82 | Take Profit: 5297.61| Stop Loss: 5110.80.

FTSE 100:

The FTSE 100 remained unchanged as a varied set of company results failed to provide a clear direction for the blue-chip index.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8404.02 | Positive Crossover | Bullish
  • MA 20: 8359.34 | Positive Crossover | Bullish
  • MA 50: 8234.78 | Positive Crossover | Bullish

Simple:

  • MA 5: 8417.03 | Positive Crossover | Bullish
  • MA 20: 8366.34| Positive Crossover | Bullish
  • MA 50: 8205.74 | Positive Crossover | Bullish

RSI (Relative Strength Index): 71.24| Buy Zone| Bullish


Stochastic Oscillator: 9.62| Selling Zone | Negative

Resistance And Support Levels:

  • R1: 8455.54 | R2: 8524.35
  • S1: 8364.30| S2: 8258.71


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 8292.2 | Take Profit: 8457.2| Stop Loss: 82210.

Euro Stoxx 50:

On Tuesday, European stock markets predominantly declined as investors analysed additional corporate earnings prior to the unveiling of the latest U.S. inflation reports.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5067.45 | Positive Crossover | Bullish
  • MA 20: 5043.45 | Positive Crossover | Bullish
  • MA 50: 5012.31 | Positive Crossover | Bullish

Simple:

  • MA 5: 5073.06 | Positive Crossover | Bullish
  • MA 20: 5036.65| Positive Crossover | Bullish
  • MA 50: 4993.18 | Positive Crossover | Bullish

RSI (Relative Strength Index): 64.47| Bullish Zone| Positive


Stochastic Oscillator: 45.31| Neutral Zone | Negative

Resistance And Support Levels:

  • R1: 5092 | R2: 5141
  • S1: 5032| S2: 4936


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5020 | Take Profit: 5104| Stop Loss: 4974.


Elsewhere in the Indices Market:


Asian shares hovered near 15-month highs on Tuesday.

The Shanghai composite is down at 0.7%. Overall, the Singapore MSCI up 0.79% to 308.05. Over in Hong Kong, the Hang Seng Index down 0.22% to 19,073.71. In Japan, the Nikkei 225 up 0.46% to 38,356.06, while the Topix index was up 0.25% to 2730.95. South Korea’s Kospi up 0.11% to 2,730.34. Australia S&P/ASX 200 down 0.30% to, 7,726.80.

European stocks remained flat as global markets awaited U.S. inflation data.

The DAX futures contract in Germany traded 0.15 lower, CAC 40 futures in France up 0.01% to 8,209.95 and the UK 100 futures contract in the U.K. up 0.12% to 8,425.13.

U.S. stock futures remained mostly unchanged as investors prepared for key inflation reports.

Stock futures hovered near the flatline on Tuesday as Wall Street awaited the release of key inflation reports.

Indexes: Dow up 0.1%, S&P 500- down 0.02%, Nasdaq up 0.29%.


Corporate News:

Netflix, Inc. (NFLX) up 0.94% at 616.59, Tesla, Inc (TSLA) up 2.03% at 171.89, Apple Inc. (AAPL) up 1.76% at 186.28. Goldman Sachs Group Inc (GS) down 0.26% at 453.56, Morgan Stanley (MS) up 0.28% at 98.56.



Key Economic Events & Data Release Today:

(GBP) Claimant Count Change (Apr) Forecast 13.9K, Previous 10.9K at 11:30.

(GBP) Average Earnings Index + Bonus (Mar) Forecast 5.3%, Previous 5.6% at 11:30.

(EUR) German CPI (MoM) (Apr) Forecast 0.5%, Previous 0.4% at 11:30.

(CAD) Wholesale Sales (MoM) (Mar) Forecast –0.9%, Previous 0.0% at 18:00.

(USD) PPI (MoM) (Apr) Forecast 0.3%, Previous 0.2% at 18:00.

(USD) Fed Chair Powell Speaks at 19:30.