. Daily Index Analysis - Dow, S&P, FTSE, Euro & Asian.

Daily Index Analysis – Dow, S&P, FTSE, Euro & Asian.

Daily Index Analysis – Dow, S&P, FTSE, Euro & Asian.

09 Feb 2024

Introduction:

In the global indices market, Asian markets showcase positive momentum following Wall Street’s overnight gains. Meanwhile, European shares encountered a downturn, led by declining bank and energy stocks. Key futures contracts indicate mixed sentiments, with the DAX slightly up, the CAC 40 down, and the UK 100 holding a modest gain. On Wall Street, indexes maintain near-record levels as investors react to earnings reports, robust U.S. job data, and a strengthening U.S. dollar, particularly the S&P nearing the noteworthy 5,000-point mark.

Market In Focus for today – Dow Jones

The Dow Jones index rebounded from its intraday lows, buoyed by a robust surge in Disney stock.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38731.75 | Positive Crossover | Bullish
  • MA 20: 38641.15 | Positive Crossover | Bullish
  • MA 50: 38733.51 | Positive Crossover | Bullish

Simple:

  • MA 5: 38710.07 | Positive Crossover | Bullish
  • MA 20: 38640.10| Positive Crossover | Bullish
  • MA 50: 38777.00 | Positive Crossover | Bullish

RSI (Relative Strength Index): 64.83| Buy Zone| Bullish

Stochastic Oscillator: 94.74| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 38852.75 | R2: 39229.46
  • S1: 38430.09| S2: 37989.06

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 38466.84 | Take Profit: 38852.75| Stop Loss: 38227.95.

S&P 500:

The S&P 500 is unable to breach the 5000 level as traders opt to secure some profits.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5001.05 | Positive Crossover | Bullish
  • MA 20: 4976.48 | Positive Crossover | Bullish
  • MA 50: 4929.11 | Positive Crossover | Bullish

Simple:

  • MA 5: 4999.34 | Positive Crossover | Bullish
  • MA 20: 4976.38| Positive Crossover | Bullish
  • MA 50: 4929.56| Positive Crossover | Bullish

RSI (Relative Strength Index): 71.18| Bullish Zone| Positive

Stochastic Oscillator: 91.37| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 5022.35 | R2: 5095.86
  • S1: 4950.51| S2: 4861.96

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4958.86 | Take Profit: 5022.35| Stop Loss: 4918.76.

FTSE 100:

The FTSE 100 experienced a week of volatility, influenced by the Bank of England’s decision to maintain interest rates and the release of financial results from major companies like BP.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7637.07 | Negative Crossover | Bearish
  • MA 20: 7652.11 | Negative Crossover | Bearish
  • MA 50: 7603.22 | Positive Crossover | Bullish

Simple:

  • MA 5: 7653.99 | Negative Crossover | Bearish
  • MA 20: 7652.06| Negative Crossover | Bearish
  • MA 50: 7603.20| Positive Crossover | Bullish

RSI (Relative Strength Index): 41.57| Neutral Zone| Neutral

Stochastic Oscillator: 0.00| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 7659.9 | R2: 7724.5
  • S1: 7608.0| S2: 7511.2

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Sell Limit: 7587.0 | Take Profit: 7511.2| Stop Loss: 7638.9.

DAX 40:

European markets commenced trading on Friday with mixed dynamics, mirroring the recent record highs seen in US indices. The German DAX showed a flat performance after the opening bell.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17045.11 | Negative Crossover | Bearish
  • MA 20: 17032.03 | Negative Crossover | Bearish
  • MA 50: 16949.06 | Positive Crossover | Bullish

Simple:

  • MA 5: 17060.04| Negative Crossover | Bearish
  • MA 20: 17032.06| Negative Crossover | Bearish
  • MA 50: 16949.72| Positive Crossover | Bullish

RSI (Relative Strength Index): 52.78| Positive Zone| Bullish

Stochastic Oscillator: 25.15|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 17120.1 | R2: 17288.7
  • S1: 16982.8| S2: 16810.2

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Stop Sell : 17022.0 | Take Profit: 16857.2| Stop Loss: 17120.1.

Elsewhere in the Indices Market:

Asian markets are trading with upward momentum, reflecting the positive performance on Wall Street overnight.

The Shanghai composite is up at 0.28%. Overall, the Singapore MSCI is down 0.41% to 277.50. Over in Hong Kong, the Hang Seng Index down 0.83% to 15,746.58. In Japan, the Nikkei 225 was up 0.09% to 36,897.42, while the Topix index was down 0.19% to 2557.88. South Korea’s Kospi up 0.41% to 2,620.32. Australia S&P/ASX 200 is up 0.073% to, 7,644.80.

European shares experience a decline, weighed down by decreasing bank and energy stocks.

The DAX futures contract in Germany traded 0.1 higher, CAC 40 futures in France down 0.15% to 7,654.11 and the UK 100 futures contract in the U.K. up 0.10% to 7,602.78.

Wall Street holds near record level.

On Thursday, the key indexes of Wall Street experienced an increase, with the S&P nearing the significant 5,000-point threshold. This movement was driven by investor responses to earnings reports, U.S. jobs data, and a strengthening U.S. dollar.

Indexes: Dow down 0.13%, S&P 500- up 0.06%, Nasdaq up 0.24%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.14% at 558.53, Tesla, Inc. (TSLA) is up 1.06% at 189.56, and Apple Inc. (AAPL) is down 0.58% at 188.32. Goldman Sachs Group Inc (GS) is down 0.42% at 385.04, and Morgan Stanley (MS) is down 0.41% at 85.65.

Key Economic Events & Data Release Today:

(AUD) RBA Bullock Speaks at 04:00.

(EUR) German CPI (MoM) (Jan) Forecast 0.2%, Previous 0.1% at 12:30.

(CAD) Unemployment Rate (Jan) Forecast 5.9%, Previous 5.8% at 19:00.

(CAD) Employment Change (Jan) Forecast 16.0K, Previous 0.1K at 19:00.