. Daily Index Analysis - Dow Jones in Crisis, Stocks Drop Amidst Surging Rates

Daily Index Analysis – Dow Jones in Crisis, Stocks Drop Amidst Surging Rates

Daily Index Analysis – Dow Jones in Crisis, Stocks Drop Amidst Surging Rates

27 Sep 2023

Introduction:

In the global indices market, Asian markets exhibit a mixed response following Wall Street’s overnight losses. Notably, the Shanghai composite is up, while Singapore’s MSCI and Australia’s S&P/ASX 200 face declines. Meanwhile, European shares break a four-day losing streak, with some insurers lagging. In the United States, Wall Street grapples with the impact of rising interest rates, which led to a lower close for major indexes as investors ponder the potential economic implications of sustained high rates.

Market In Focus for today – Dow Jones

The major Wall Street indexes fell more than 1% on Tuesday as 10-year Treasury rates maintained multi-year highs. Dow Jones posted its biggest one-day percentage drop since March.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 34012.71 | Negative Crossover | Bearish
  • MA 20: 34329.42 | Negative Crossover | Bearish
  • MA 50: 34546.44 | Negative Crossover | Bearish

Simple:

  • MA 5: 34012.09 | Negative Crossover | Bearish
  • MA 20: 34421.52| Negative Crossover | Bearish
  • MA 50: 34605.43 | Negative Crossover | Bearish

RSI (Relative Strength Index): 30.09 | Sell Zone | Bearish

Stochastic Oscillator: 7.28 | Sell Zone | Negative

Resistance And Support Levels: 

  • R1: 34391.58 | R2: 34941.76
  • S1: 33886.32 | S2: 33280.00

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 33639.30 | Take Profit: 33280.00 | Stop Loss: 33897.55.

Elsewhere in the Indices Market

Asia Markets trade mixed following overnight losses from Wall Street.

The Shanghai composite is up at 0.16%. Overall, the Singapore MSCI is down 0.50% to 282.65. Over in Hong Kong, the Hang Seng Index up by 0.83% to 17,611.87. In Japan, the Nikkei 225 was up 0.18% to 32,371.90, while the Topix index was up 0.32% to 2,379.53. South Korea’s Kospi up 0.09% to 2,495.76. Australia S&P/ASX 200 is down 0.11% to, 7,030.30.

European shares snap 4-day losing streak, insurers lag as NN group falls.

The DAX futures contract in Germany traded 0.22 lower, CAC 40 futures in France up 0.01% to 7,074.90, and the UK 100 futures contract in the U.K. down 0.32% to 7,600.98.

Wall Street pounded as investors grapple with higher rates.

As 10-year Treasury yields maintained multi-year highs on Tuesday, Wall Street’s major indexes ended the day lower than they had started. Investors are still concerned about the possibility of sustained high-interest rates and the potential economic consequences.

Indexes down: Dow 1.19%, S&P 500- 1.14%, Nasdaq 1.48%.

Corporate News:

Netflix Inc. (NFLX) is down 1.44% at 379.25, Nike Inc. (NKE) is down at 0.47% at 90.17, and Amazon.com, Inc. (AMZN) is down at 4.03% at 125.98. JPMorgan Chase & Co (JPM) is down 1.04% at 144.93, and Morgan Stanley (MS) is down 1.04% at 82.17.

Key Economic Events & Data Release Today:

(JPY) Monetary Policy Meeting Minutes at 05:20.

(EUR) European Central Bank Non-monetary Policy Meeting at 12:30

(USD) Crude Oil Inventories Forecast –1.320M, Previous –2.867M at 20:00.