. Daily Index Analysis - Dow soars, S&P teeters, FTSE optimistic, DAX fears.

Daily Index Analysis – Dow soars, S&P teeters, FTSE optimistic, DAX fears.

Daily Index Analysis – Dow soars, S&P teeters, FTSE optimistic, DAX fears.

31 Jan 2024

Introduction:

In the global indices market, Asian markets show a varied performance with disappointing Chinese economic data, while European markets display a mixed trend ahead of the Federal Reserve decision. The US stocks, particularly the Nasdaq, face a subdued atmosphere as investors await corporate earnings and the outcome of the Fed’s monetary policy meeting.

Market In Focus for today – Dow Jones

Dow Jones advances, propelled by the robust showing of financial stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38542.06 | Positive Crossover | Bullish
  • MA 20: 38263.37 | Positive Crossover | Bullish
  • MA 50: 37971.07 | Positive Crossover | Bullish

Simple:

  • MA 5: 38537.01 | Positive Crossover | Bullish
  • MA 20: 38263.17| Positive Crossover | Bullish
  • MA 50: 37972.07 | Positive Crossover | Bullish

RSI (Relative Strength Index): 73.34| Buy Zone| Bullish

Stochastic Oscillator: 100.00| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 38055.00 | R2: 38682.50
  • S1: 37578.97| S2: 37124.57

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 37990.09 | Take Profit: 38682.50| Stop Loss: 37557.33.

S&P 500:

The S&P 500 closed near unchanged on Tuesday as Wall Street remained in anticipation of the upcoming Federal Reserve decision on interest rates.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4931.15 | Negative Crossover | Bearish
  • MA 20: 4916.95 | Positive Crossover | Bullish
  • MA 50: 4855.70 | Positive Crossover | Bullish

Simple:

  • MA 5: 4937.19 | Negative Crossover | Bearish
  • MA 20: 4916.85| Positive Crossover | Bullish
  • MA 50: 4855.68| Positive Crossover | Bullish

RSI (Relative Strength Index): 60.01| Bullish Zone| Positive

Stochastic Oscillator: 0.00| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4930.97 | R2: 5150.35
  • S1: 4844.20| S2: 4723.83

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4841.40 | Take Profit: 4930.97| Stop Loss: 4793.81.

FTSE 100:

FTSE-100 rises as UK inflation eases, suggesting a potential increase in consumer spending.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7639.34 | Positive Crossover | Bullish
  • MA 20: 7549.19 | Positive Crossover | Bullish
  • MA 50: 7591.12 | Positive Crossover | Bullish

Simple:

  • MA 5: 7643.00 | Positive Crossover | Bullish
  • MA 20: 7549.24| Positive Crossover | Bullish
  • MA 50: 7591.66| Positive Crossover | Bullish

RSI (Relative Strength Index): 65.38| Buying Zone| Buy

Stochastic Oscillator: 78.47|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 7688.8 | R2: 7780.8
  • S1: 7604.2| S2: 7515.9

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 7668.2 | Take Profit: 7740.4| Stop Loss: 7626.6.

DAX 40:

DAX experiences fluctuations amidst concerns about Germany’s risk of recession.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17057.77 | Negative Crossover | Bearish
  • MA 20: 16981.00 | Positive Crossover | Bullish
  • MA 50: 16833.42 | Positive Crossover | Bullish

Simple:

  • MA 5: 17070.06| Negative Crossover | Bearish
  • MA 20: 16980.08| Positive Crossover | Bullish
  • MA 50: 16833.32| Positive Crossover | Bullish

RSI (Relative Strength Index): 59.04| Positive Zone| Bullish

Stochastic Oscillator: 29.27|SellZone | Negative

Resistance And Support Levels:

  • R1: 16910.08 | R2: 17199.00
  • S1: 16657.00| S2: 16447.08

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 16884.06 | Take Profit: 17199.0| Stop Loss: 16674.09

Elsewhere in the Indices Market:

Asian markets exhibit a mixed performance in anticipation of the Fed decision; China’s economic data disappoint.

The Shanghai composite is down at 1.48%. Overall, the Singapore MSCI is down 0.33% to 277.57. Over in Hong Kong, the Hang Seng Index down 1.39% to 15,485.07. In Japan, the Nikkei 225 was up 0.61% to 36,286.71, while the Topix index was up 0.96% to 2551.10. South Korea’s Kospi down 0.07% to 2,497.09. Australia S&P/ASX 200 is up 1.06% to, 7,680.70.

European stock markets display a mixed ahead of the Fed decision.

The DAX futures contract in Germany traded 0.04 higher, CAC 40 futures in France up 0.18% to 7,691.46, and the UK 100 futures contract in the U.K. down 0.07% to 7,661.10.

US stocks muted ahead of Fed decision.

The Nasdaq, dominated by tech stocks, experienced a decline on Tuesday as investors anticipated significant corporate earnings releases and awaited the Federal Reserve’s monetary policy meeting.

Indexes: Dow up 0.35%, S&P 500- down 0.06%, Nasdaq down 0.76%.

Corporate News:

Netflix, Inc. (NFLX) is down 2.25% at 562.85, Tesla, Inc. (TSLA) is up 0.35% at 191.59, and Apple Inc. (AAPL) is down 1.92% at 188.04. Goldman Sachs Group Inc (GS) is up 1.66% at 386.87, and Morgan Stanley (MS) is up 0.98% at 87.62.

Key Economic Events & Data Release Today:

(EUR) German Unemployment Change (Jan) Forecast –11K, Previous –5K at 03:55.

(EUR) German CPI (MoM) (Jan) Forecast 0.2%, Previous 0.1% at 08:00.

(USD) ADP Nonfarm Employment Change (Jan) Forecast 145K, Previous 164K at 08:15.

(CAD) GDP (MoM) (Nov) Forecast 0.1%, Previous 0.0% at 08:30.

(USD) Fed Interest Rate Decision at 14:00.

(USD) FOMC Press Conference at 14:30.