. Daily Index Analysis - Dow, S&P resilient, Euro mirrors triumph.

Daily Index Analysis – Dow, S&P resilient, Euro mirrors triumph.

Daily Index Analysis – Dow, S&P resilient, Euro mirrors triumph.

02 Feb 2024

Introduction:

In the world of indices, Asian shares predominantly climb as Wall Street bounces back, fuelled by the technology sector’s resilience. European stocks experience a surge amid ongoing impressive corporate earnings. Meanwhile, U.S. stocks rebound following the Federal Reserve’s letdown and strong earnings from major tech firms, reversing the prior session’s sell-off.

Market In Focus for today – Dow Jones

The Dow Jones rises on surprise jobless claims.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38557.13 | Positive Crossover | Bullish
  • MA 20: 38369.54 | Positive Crossover | Bullish
  • MA 50: 38045.55 | Positive Crossover | Bullish

Simple:

  • MA 5: 38498.00 | Positive Crossover | Bullish
  • MA 20: 38368.23| Positive Crossover | Bullish
  • MA 50: 38045.55 | Positive Crossover | Bullish

RSI (Relative Strength Index): 64.54| Buy Zone| Bullish

Stochastic Oscillator: 55.66| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 38717.50 | R2: 39266.49
  • S1: 38052.05| S2: 37369.97

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 38235.05 | Take Profit: 38717.50| Stop Loss: 37885.69.

S&P 500:

S&P 500 gets a lift from tech earnings, overcoming increased Treasury yields ahead of the Non-Farm Payrolls report.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4939.32 | Positive Crossover | Bullish
  • MA 20: 4922.70 | Positive Crossover | Bullish
  • MA 50: 4868.53 | Positive Crossover | Bullish

Simple:

  • MA 5: 4928.20 | Positive Crossover | Bullish
  • MA 20: 4922.70| Positive Crossover | Bullish
  • MA 50: 4868.88| Positive Crossover | Bullish

RSI (Relative Strength Index): 63.24| Bullish Zone| Positive

Stochastic Oscillator: 67.12| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 4960.52 | R2: 5061.37
  • S1: 4842.38| S2: 4718.48

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4859.67 | Take Profit: 4960.52| Stop Loss: 4796.28.

FTSE 100:

European stock markets displayed a varied performance, with the FTSE-100 Index registering modest increases.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7667.78 | Negative Crossover | Bearish
  • MA 20: 7645.51 | Positive Crossover | Bullish
  • MA 50: 7585.49 | Positive Crossover | Bullish

Simple:

  • MA 5: 7663.44 | Negative Crossover | Bearish
  • MA 20: 7645.05| Positive Crossover | Bullish
  • MA 50: 7585.14| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.83| Buying Zone| Buy

Stochastic Oscillator: 35.34|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7675.3 | R2: 7791.8
  • S1: 7629.20| S2: 7543.3

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 7704.1 | Take Profit: 7788.1| Stop Loss: 7649.3.

EURO STOXX 50:

European shares climbed on Friday as traders evaluated numerous positive corporate updates from the region. The index mirrored Wall Street’s overnight gains, fuelled by softer economic data and favorable tech results.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4680.30 | Positive Crossover | Bullish
  • MA 20: 4655.25 | Positive Crossover | Bullish
  • MA 50: 4553.07 | Positive Crossover | Bullish

Simple:

  • MA 5: 4676.07| Positive Crossover | Bullish
  • MA 20: 4655.25| Positive Crossover | Bullish
  • MA 50: 4553.07| Positive Crossover | Bullish

RSI (Relative Strength Index): 70.26| Positive Zone| Bullish

Stochastic Oscillator: 44.98|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 4696 | R2: 4777
  • S1: 4574| S2: 4465

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 4598 | Take Profit: 4696| Stop Loss: 4539

Elsewhere in the Indices Market:

Asian shares mostly rose after Wall Street rebounds primarily driven by strength in the technology sector.

The Shanghai composite is down at 1.46%. Overall, the Singapore MSCI is up 1.77% to 280.70. Over in Hong Kong, the Hang Seng Index down 0.21% to 15,533.56. In Japan, the Nikkei 225 was up 0.41% to 36,158.02, while the Topix index was up 0.22% to 2539.68. South Korea’s Kospi up 2.87% to 2,615.31. Australia S&P/ASX 200 is up 1.47% to, 7,699.40.

European stocks surge as impressive corporate earnings reports persist.

The DAX futures contract in Germany traded 0.76 higher, CAC 40 futures in France up 0.53% to 7,628.79 and the UK 100 futures contract in the U.K. up 0.28% to 7,643.80.

U.S. stocks recover following a letdown from the Federal Reserve and robust earnings from major tech companies.

On Thursday, U.S. stocks staged a recovery, reversing the previous session’s sell-off triggered by the Federal Reserve’s dismissal of expectations for immediate rate cuts.

Indexes: Dow up 0.05%, S&P 500- up 1.17%, Nasdaq up 1.28%.

Corporate News:

Netflix, Inc. (NFLX) is up 0.60% at 567.51, Tesla, Inc. (TSLA) up 0.84% at 188.86, and Apple Inc. (AAPL) up 1.33% at 186.86. Goldman Sachs Group Inc (GS) is down 0.42% at 383.85, and Morgan Stanley (MS) is down 0.48% at 86.82.

Key Economic Events & Data Release Today:

(USD) Nonfarm Payrolls (Jan) Forecast 187K, Previous 216K at 08:30.

(USD) Unemployment Rate (Jan) Forecast 3.8%, Previous 216K at 08:30.

(USD) Average Hourly Earnings (MoM) (Jan) Forecast 0.3%, Previous 0.4% at 08:30.