. Daily Index Analysis - Dow Jones Struggles, S&P 500 Hits Record.

Daily Index Analysis – Dow Jones Struggles, S&P 500 Hits Record.

Daily Index Analysis – Dow Jones Struggles, S&P 500 Hits Record.

06 Jun 2024


Introduction:

Global stocks rise as investors eye potential Fed rate cuts. Asian markets see gains with China’s Shanghai composite being the only major index to dip. European futures inch higher ahead of the ECB decision, while US futures hold steady after recent record highs.

Market In Focus for today – Dow Jones

The Dow Jones struggled to gain significant upward momentum due to weak demand in defensive sectors.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38799.04 | Positive Crossover | Bullish
  • MA 20: 38802.25 | Positive Crossover | Bullish
  • MA 50: 38983.18 | Negative Crossover | Bearish

Simple:

  • MA 5: 38780.20 | Positive Crossover | Bullish
  • MA 20: 38618.96| Positive Crossover | Bullish
  • MA 50: 39211.89 | Negative Crossover | Bearish

RSI (Relative Strength Index): 50.53| Bullish Zone| Positive


Stochastic Oscillator: 97.34| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 39708.53 | R2: 39716.89
  • S1: 38557.20| S2: 38110.34


Overall Sentiment: Neutral | Market Direction: Buy


Trade Suggestion: Stop Buy: 38908.30 | Take Profit: 39408.35| Stop Loss: 38599.75.

S&P 500:

S&P 500 at record high.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5331.30 | Positive Crossover | Bullish
  • MA 20: 5316.68 | Positive Crossover | Bullish
  • MA 50: 5298.78 | Positive Crossover | Bullish

Simple:

  • MA 5: 5322.12 | Positive Crossover | Bullish
  • MA 20: 5298.33| Positive Crossover | Bullish
  • MA 50: 5314.89 | Positive Crossover | Bullish

RSI (Relative Strength Index): 67.42|Buy Zone | Positive


Stochastic Oscillator: 97.23 | Buy Zone | Positive

Resistance And Support Levels:

  • R1: 5374.15 | R2: 5453.54
  • S1: 5283.10| S2: 5192.04


Overall Sentiment: Bullish| Market Direction: Buy


Trade Suggestion: Buy Limit : 5266.75 | Take Profit: 5376.49| Stop Loss: 5206.05.

FTSE 100:

The FTSE 100 edges higher as ECB is anticipated to cut interest rates.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8274.06 | Positive Crossover | Bullish
  • MA 20: 8281.23 | Positive Crossover | Bullish
  • MA 50: 8293.77 | Negative Crossover | Bearish

Simple:

  • MA 5: 8275.87 | Negative Crossover | Bearish
  • MA 20: 8258.28| Positive Crossover | Bullish
  • MA 50: 8337.68 | Negative Crossover | Bearish

RSI (Relative Strength Index): 49.75| Bullish Zone| Positive


Stochastic Oscillator: 46.29| Neutral Zone | Negative

Resistance And Support Levels:

  • R1: 8362.5 | R2: 8485.2
  • S1: 8206.3| S2: 8057.6


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion: Stop Sell : 8340.2 | Take Profit: 8169.1| Stop Loss: 8477.8.

Euro Stoxx 50:

European stocks showed slight gains on Thursday as traders awaited the European Central Bank’s (ECB) decision on interest rates.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5027.27 | Positive Crossover | Bullish
  • MA 20: 5019.52 | Positive Crossover | Bullish
  • MA 50: 5021.53 | Positive Crossover | Bullish

Simple:

  • MA 5: 5018.6 | Positive Crossover | Bullish
  • MA 20: 5002.8| Positive Crossover | Bullish
  • MA 50: 5033.28 | Positive Crossover | Bullish

RSI (Relative Strength Index): 60.25| Bullish Zone| Positive


Stochastic Oscillator: 100.00| Positive Zone | Positive

Resistance And Support Levels:

  • R1: 5079 | R2: 5146
  • S1: 4991| S2: 4901


Overall Sentiment: Neutral | Market Direction: Buy


Trade Suggestion: Buy Limit : 5033 | Take Profit: 5138| Stop Loss: 4971.


Elsewhere in the Indices Market:


Asian stocks rally as bets on US Fed rate cuts gain momentum.

The Shanghai composite is down at 0.54%. Overall, the Singapore MSCI down 0.06% to 310.48. Over in Hong Kong, the Hang Seng Index up 0.28% to 18,476.80. In Japan, the Nikkei 225 up 0.55% to 38,703.51, while the Topix index was up 0.33% to 2757.23. South Korea’s Kospi up 1.03% to 2,689.50. Australia S&P/ASX 200 up 0.68% to, 7,821.80.

European stocks edge higher ahead of ECB rate decision.

The DAX futures contract in Germany traded 0.80 higher, CAC 40 futures in France up 0.60% to 8,054.24 and the UK 100 futures contract in the U.K. up 0.42% to 8,281.75.

US futures hold steady after record-breaking close.

U.S. stock index futures traded within narrow ranges on Thursday, stabilizing after a surge in heavyweight Nvidia propelled Wall Street to record highs in the previous session.

Indexes: Dow down 0.08%, S&P 500- up 1.18%, Nasdaq up 1.96%.

Corporate News:

Netflix, Inc. (NFLX) up 2.95% at 650.27, Tesla, Inc (TSLA) up 0.13% at 175.00, Apple Inc. (AAPL) up 0.78% at 195.87. Goldman Sachs Group Inc (GS) up 1.40% at 461.68, Morgan Stanley (MS) up 0.083% at 96.66.



Key Economic Events & Data Release Today:

(GBP) Construction PMI (May) Forecast 52.5, Previous 53.0 at 14:00.

(EUR) ECB Interest Rate Decision (Jun) Forecast 4.25% Previous 4.50% at 17:45.

(EUR) Deposit Facility Rate (Jun) Forecast 3.75%, Previous 4.00% at 17:45.

(EUR) ECB Marginal Lending Facility Previous 4.75% at 17:45.

(EUR) ECB Monetary Policy Statement at 17:45.

(USD) Initial Jobless Claims Forecast 220K, Previous 219K at 18:00.

(CAD) Ivey PMI (May) Forecast 65.2, Previous 63.0 at 19:30.

(EUR) ECB President Lagarde Speaks at 19:45.