. Daily Index Analysis - DOW soars, S&P 500 breaks records, FTSE defies storm.

Daily Index Analysis – DOW soars, S&P 500 breaks records, FTSE defies storm.

Daily Index Analysis – DOW soars, S&P 500 breaks records, FTSE defies storm.

22 Jan 2024

Introduction:

After Wall Street’s record-setting rally, Asian markets displayed varied performances on Monday. The Shanghai composite declined by 2.68%, while Japan’s Nikkei 225 rose by 1.62%. In Europe, shares mirrored the positive trend, with DAX futures up 0.48%, CAC 40 futures rising 0.49%, and UK 100 futures gaining 0.15%. The S&P 500 in the U.S. reached a two-year closing high on Friday, propelled by optimism in artificial intelligence and a surge in chipmakers and major tech stocks. Attention now shifts to the European Central Bank (ECB).

Market In Focus for today – DOW JONES

Bullish signals are evident in the Dow Jones Industrial Average (DOW) as it experiences a current surge, surpassing the $37,791.43 level. This breakout suggests a departure from a triple top pattern.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37991.98 | Positive Crossover | Bullish
  • MA 20: 37702.84 | Positive Crossover | Bullish
  • MA 50: 37771.71 | Positive Crossover | Bullish

Simple:

  • MA 5: 38023.05 | Positive Crossover | Bullish
  • MA 20: 37702.22| Positive Crossover | Bullish
  • MA 50: 37771.34 | Positive Crossover | Bullish

RSI (Relative Strength Index): 64.98| Buy Zone| Bullish

Stochastic Oscillator: 100| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 38154.50 | R2: 38784.03
  • S1: 37362.51| S2: 36672.06

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy : 37585.89 | Take Profit: 38296.65| Stop Loss: 37139.13.

S&P 500:

On Friday, the S&P 500 achieved its initial record close in over two years, concurrently establishing a new intraday record. This accomplishment followed a period of fluctuation within a narrow trading range for nearly a month.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4864.46 | Positive Crossover | Bullish
  • MA 20: 4813.34 | Positive Crossover | Bullish
  • MA 50: 4793.05 | Positive Crossover | Bullish

Simple:

  • MA 5: 4866.12 | Positive Crossover | Bullish
  • MA 20: 4813.69| Positive Crossover | Bullish
  • MA 50: 4793.06| Positive Crossover | Bullish

RSI (Relative Strength Index): 74.27| Bullish Zone| Positive

Stochastic Oscillator: 94.98|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4889.60 | R2: 4959.87
  • S1: 4827.44| S2: 4719.33

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 4795.01 | Take Profit: 4889.60| Stop Loss: 4743.65.

FTSE 100:

Despite storm Isha affecting parts of the continent, the FTSE 100 and European indexes surged higher on Monday morning.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7489.98 | Negative Crossover | Bearish
  • MA 20: 7537.36 | Negative Crossover | Bearish
  • MA 50: 7639.05 | Negative Crossover | Bearish

Simple:

  • MA 5: 7492.06 | Negative Crossover | Bearish
  • MA 20: 7537.73| Negative Crossover | Bearish
  • MA 50: 7639.02| Negative Crossover | Bearish

RSI (Relative Strength Index): 34.26| Selling Zone| Sell

Stochastic Oscillator: 83.21|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7515.8 | R2: 7602.3
  • S1: 7443.8| S2: 7353.2

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Limit Sell : 7503.5 | Take Profit: 7421.2| Stop Loss: 7561.2.

DAX 40:

On Monday, European shares climbed, mirroring a Wall Street rally . Investors awaited the European Central Bank’s policy decision scheduled for later in the week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16723.44 | Positive Crossover | Bullish
  • MA 20: 16695.02 | Positive Crossover | Bullish
  • MA 50: 16763.08 | Negative Crossover | Bearish

Simple:

  • MA 5: 16727.04 | Positive Crossover | Bullish
  • MA 20: 16695.15| Positive Crossover | Bullish
  • MA 50: 16763.54| Negative Crossover | Bearish

RSI (Relative Strength Index): 50.12| Positive Zone| Bullish

Stochastic Oscillator: 94.27|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 16930.5 | R2: 17208.0
  • S1: 16644.1| S2: 16250.2

Overall Sentiment: Neutral | Market Direction: Buy

Trade Suggestion:  Limit Buy : 16644.1 | Take Profit: 16993.1| Stop Loss: 16438.2.

Elsewhere in the Indices Market:

Asian markets displayed a mix of performances on Monday, following Wall Street’s return to record levels on Friday.

The Shanghai composite is down at 2.68%. Overall, the Singapore MSCI down 0.30% to 275.27. Over in Hong Kong, the Hang Seng Index down 2.27% to 14,961.18. In Japan, the Nikkei 225 up 1.62% to 36,546.95, while the Topix index was up 1.39% to 2,544.92. South Korea’s Kospi down 0.34% to 2,464.35. Australia S&P/ASX 200 up 0.75% to, 7,476.60.

European shares follow the record-setting rally on Wall Street, with attention turning to the European Central Bank (ECB).

The DAX futures contract in Germany traded 0.48 higher, CAC 40 futures in France up 0.49% to 7,407.76 and the UK 100 futures contract in the U.K. up 0.15% to 7,473.42.

On Friday, the U.S. market gained momentum, propelling the S&P 500 to achieve a new all-time high.

The S&P 500 achieved its highest closing record in two years on Friday, driven by a surge in chipmakers and major technology stocks amid optimism surrounding artificial intelligence.

Indexes: Dow up 1.05%, S&P 500- up 1.23%, Nasdaq up 1.70%.

Corporate News:

Netflix, Inc. (NFLX) down 0.49% at 482.95, Tesla, Inc (TSLA) up 0.15% at 212.19, Apple Inc. (AAPL) up 1.55% at 191.56. Goldman Sachs Group Inc (GS) up 1.40% at 382.20, Morgan Stanley (MS) up 1.72% at 85.34.

Key Economic Events & Data Release Today:

(CNY) PBoC Loan Prime Rate Forecast 3.45%, Previous 3.45% at 06:45.

(EUR) ECB President Lagarde Speaks at 19:30.