. Daily Index Analysis - Dow Soars, S&P Peaks, Euro Edges.

Daily Index Analysis – Dow Soars, S&P Peaks, Euro Edges.

Daily Index Analysis – Dow Soars, S&P Peaks, Euro Edges.

12 Dec 2023

Introduction:

In the global indices market, Asian markets show an uptrend ahead of the US Consumer Prices update. Key indices like the Shanghai Composite, Hang Seng, Nikkei 225, and others reflect positive movements. Meanwhile, European markets remain subdued, awaiting US inflation data and the Federal Reserve meeting. In the US, stocks closed higher amid anticipation of crucial CPI data and the year-end Federal Reserve policy decision.

Market In Focus for today – DOW JONES

The Dow gains 150 points, securing its third consecutive positive day as stocks continue their strong performance in December.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 36400.50 | Positive Crossover | Bullish
  • MA 20: 36190.27 | Positive Crossover | Bullish
  • MA 50: 35755.26 | Positive Crossover | Bullish

Simple:

  • MA 5: 36387.50 | Positive Crossover | Bullish
  • MA 20: 36235.45| Positive Crossover | Bullish
  • MA 50: 35755.49 | Positive Crossover | Bullish

RSI (Relative Strength Index): 72.94| Buy Zone| Bullish

Stochastic Oscillator: 85.09|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 36521.00 | R2: 37151.64
  • S1: 35962.02| S2: 35345.71

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit : 35962.02 | Take Profit: 36463.67| Stop Loss: 35603.70.

S&P 500:

S&P 500 futures linger at their highest levels in 2023 in anticipation of the upcoming inflation report.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4618.45 | Positive Crossover | Bullish
  • MA 20: 4593.24 | Positive Crossover | Bullish
  • MA 50: 4558.09 | Positive Crossover | Bullish

Simple:

  • MA 5: 4618.07 | Positive Crossover | Bullish
  • MA 20: 4587.42| Positive Crossover | Bullish
  • MA 50: 4572.59 | Positive Crossover | Bullish

RSI (Relative Strength Index): 66.28| Buy Zone| Bullish

Stochastic Oscillator: 100.00|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4634.27 | R2: 4799.93
  • S1: 4543.55| S2: 4441.00

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy : 4668.09 | Take Profit: 4773.04| Stop Loss: 4605.84.

Euro Stoxx 50:

On Tuesday, European markets displayed cautious gains as global investors directed their attention to the upcoming Federal Reserve policy meeting starting today, along with the latest U.S. inflation data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4540.44 | Positive Crossover | Bearish
  • MA 20: 4490.65 | Positive Crossover | Bullish
  • MA 50: 4421.14 | Positive Crossover | Bullish

Simple:

  • MA 5: 4541.80 | Positive Crossover | Bullish
  • MA 20: 4485.05| Positive Crossover | Bullish
  • MA 50: 4416.40 | Positive Crossover | Bullish

RSI (Relative Strength Index): 78.40| Buy Zone| Bullish

Stochastic Oscillator: 92.37|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4564 | R2: 4650
  • S1: 4490| S2: 4416

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit : 4488 | Take Profit: 4564| Stop Loss: 4438.

DAX 40:

The DAX 40 continues its robust upward movement, stretching across six consecutive bullish weeks since its October low. The index reached a new all-time high, briefly surpassing the 16,800 level, before experiencing a slight pullback in anticipation of Tuesday’s release of German ZEW economic sentiment data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16800.81 | Negative Crossover | Bearish
  • MA 20: 16638.95 | Positive Crossover | Bullish
  • MA 50: 16334.77 | Positive Crossover | Bullish

Simple:

  • MA 5: 16809.00 | Negative Crossover | Bearish
  • MA 20: 16644.75| Positive Crossover | Bullish
  • MA 50: 16306.40 | Positive Crossover | Bullish

RSI (Relative Strength Index): 74.59| Buy Zone| Bullish

Stochastic Oscillator: 30.32|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 16850.8 | R2: 17108.8
  • S1: 16555.0| S2: 16281.9

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit : 16547.4 | Take Profit: 16850.8| Stop Loss: 16335.0.

Elsewhere in the Indices Market:

Asian markets are experiencing an increase ahead of US Consumer prices update.

The Shanghai composite is up at 0.40%. Overall, the Singapore MSCI up 0.74% to 273.82. Over in Hong Kong, the Hang Seng Index up 1.07% to 16,374.50. In Japan, the Nikkei 225 up 0.16% to 32,843.70, while the Topix index was down 0.23% to 2,353.16. South Korea’s Kospi up 0.39% to 2,535.27. Australia S&P/ASX 200 up 0.50% to, 7,235.30.

European markets remain muted as investors await the release of U.S. inflation data and the upcoming Federal Reserve meeting.

The DAX futures contract in Germany traded 0.15 higher, CAC 40 futures in France up 0.20% to 7,566.50 and the UK 100 futures contract in the U.K. up 0.45% to 7,578.84.

US stocks close higher with CPI data, Fed on the horizon.

Stocks concluded with gains on Monday after a somewhat uneven start to the trading day, with investors eagerly anticipating a pivotal inflation update and the final policy decision of the year from the Federal Reserve.

Indexes: Dow up 0.12%, S&P 500- up 0.39%, Nasdaq up 0.20%.

Corporate News:

Netflix, Inc. (NFLX) up 1.35% at 459.89, Tesla, Inc (TSLA) down 1.68% at 239.74, Apple Inc. (AAPL) down 1.29% at 193.18. Goldman Sachs Group Inc (GS) up 0.27% at 351.76, Morgan Stanley (MS) up 0.66% at 82.82.

Key Economic Events & Data Release Today:

(GBP) Average Earning Index + Bonus (Oct) Actual 7.2%, Forecast 7.7%, Previous 7.9% at 12:30.

(GBP) German ZEW Economic Sentiment (Dec) Forecast 8.8%, Previous 9.8% at 15:30.

(USD) Core CPI (MoM) (Nov) Forecast 0.3%, Previous 0.2% at 19:00.

(USD) CPI (YoY) (Nov) Forecast 3.1%, Previous 3.2% at 19:00.

(USD) CPI (MoM) (Nov) Forecast 0.0%, Previous 0.0% at 19:00.