. Daily Index Analysis - Dow, S&P 500, and FTSE 100 Show Bullish Trends

Daily Index Analysis – Dow, S&P 500, and FTSE 100 Show Bullish Trends

Daily Index Analysis – Dow, S&P 500, and FTSE 100 Show Bullish Trends

16 May 2024

Introduction:

Global indices markets saw a mixed bag of movements on Thursday. Asian shares surged on the back of U.S. stock records, fueled by positive inflation trends. Meanwhile, European markets experienced a slight downturn despite the inflation-driven global optimism. In the U.S., stock futures edged up after the S&P 500’s landmark close above 5,300, buoyed by favorable inflation data.

Market In Focus for today – Dow Jones

Dow Jones futures are edging higher on Thursday.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 39818.41 | Positive Crossover | Bullish
  • MA 20: 39596.83 | Positive Crossover | Bullish
  • MA 50: 39194.47 | Positive Crossover | Bullish

Simple:

  • MA 5: 39775.7 | Positive Crossover | Bullish
  • MA 20: 39591.95| Positive Crossover | Bullish
  • MA 50: 38968.61 | Positive Crossover | Bullish

RSI (Relative Strength Index): 76.63| Bullish Zone| Positive


Stochastic Oscillator: 89.42| Buying Zone | Neutral

Resistance And Support Levels:

  • R1: 40264.33 | R2: 40749.24
  • S1: 39718.81| S2: 39082.37


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Buy Limit: 39709.90 | Take Profit: 40264.33| Stop Loss: 39367.05.

S&P 500:

The S&P 500 index surged above 5,300 for the first time in history, driven by investor optimism amid expectations that the Federal Reserve will proceed with interest rate cuts this year. This sentiment was bolstered by softer April inflation figures compared to the previous month.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5292.14 | Positive Crossover | Bullish
  • MA 20: 5260.01 | Positive Crossover | Bullish
  • MA 50: 5207.57 | Positive Crossover | Bullish

Simple:

  • MA 5: 5282.34 | Positive Crossover | Bullish
  • MA 20: 5255.28| Positive Crossover | Bullish
  • MA 50: 5179.82 | Positive Crossover | Bullish

RSI (Relative Strength Index): 78.13 | Bullish Zone| Positive


Stochastic Oscillator: 93.27 | Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 5341.00 | R2: 5400.18
  • S1: 5268.27| S2: 5184.97


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5266.95 | Take Profit: 5341.00| Stop Loss: 5225.96.

FTSE 100:

FTSE 100 is hovering near its record high, trading sideways.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8441.23 | Positive Crossover | Bullish
  • MA 20: 8407.16 | Positive Crossover | Bullish
  • MA 50: 8288.61 | Positive Crossover | Bullish

Simple:

  • MA 5: 8443.56 | Positive Crossover | Bullish
  • MA 20: 8423.06| Positive Crossover | Bullish
  • MA 50: 8273.33 | Positive Crossover | Bullish

RSI (Relative Strength Index): 66.7| Buy Zone| Bullish


Stochastic Oscillator: 4.44| Selling Zone | Neutral

Resistance And Support Levels:

  • R1: 8485.54 | R2: 8550.00
  • S1: 8364.30| S2: 8258.71


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 8292.2 | Take Profit: 8457.2| Stop Loss: 82210.

Euro Stoxx 50:

European stocks remained stagnant on Thursday as earnings reports tempered a relief rally in global markets spurred by lower-than-anticipated U.S. inflation figures.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5085.79 | Negative Crossover | Bearish
  • MA 20: 5068.28 | Positive Crossover | Bullish
  • MA 50: 5032.08 | Positive Crossover | Bullish

Simple:

  • MA 5: 5088.09 | Negative Crossover | Bearish
  • MA 20: 5075.15| Positive Crossover | Bullish
  • MA 50: 5015.28 | Positive Crossover | Bullish

RSI (Relative Strength Index): 58.15| Bullish Zone| Positive


Stochastic Oscillator: 23.34| Selling Zone | Negative

Resistance And Support Levels:

  • R1: 5093 | R2: 5141
  • S1: 5041| S2: 4972


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5048 | Take Profit: 5116| Stop Loss: 5005.


Elsewhere in the Indices Market:


Asian shares rose on Thursday following record highs in U.S. stocks, driven by optimism that inflation is trending in the right direction.

The Shanghai composite is up at 0.08%. Overall, the Singapore MSCI up 0.83% to 309.15. Over in Hong Kong, the Hang Seng Index up 1.59% to 19,376.53. In Japan, the Nikkei 225 up 1.39% to 38,920.26, while the Topix index was up 0.24% to 2737.54. South Korea’s Kospi up 0.83% to 2,730.34. Australia S&P/ASX 200 up 1.65% to, 7,881.30.

European stock markets edged lower on Thursday, despite the global rally spurred by U.S. inflation data, as investors contended with some disappointing earnings reports.

The DAX futures contract in Germany traded 0.31 lower, CAC 40 futures in France down 0.42% to 8,205.48 and the UK 100 futures contract in the U.K. up 0.06% to 8,450.63.

US Stock futures tick up following the S&P 500’s historic close above 5,300 for the first time.

Stock futures saw a slight increase on Thursday following record highs in the major averages, driven by a lower-than-anticipated inflation reading.

Indexes: Dow down 0.03%, S&P 500- up 1.17%, Nasdaq up 1.40%.


Corporate News:

Netflix, Inc. (NFLX) down 0.02% at 613.52, Tesla, Inc (TSLA) down 2.01% at 173.99, Apple Inc. (AAPL) up 1.22% at 189.72. Goldman Sachs Group Inc (GS) up 1.66% at 466.09, Morgan Stanley (MS) up 1.15% at 100.52.



Key Economic Events & Data Release Today:

(JPY) GDP (QoQ) (Q1) Forecast -0.3%, Previous 0.1% at 05:20.

(AUD) Employment Change (Apr) Forecast 22.4K, Previous –6.6K at 07:00.

(USD) Initial Jobless Claims Forecast 219K, Previous 231K at 18:00.

(USD) Building Permits (Apr) Forecast 1.480M, Previous 1.467M at 18:00.