. Daily Index Analysis -Dow stumbles, S&P steady, Global indices react.

Daily Index Analysis – Dow stumbles, S&P steady, Global indices react.

Daily Index Analysis – Dow stumbles, S&P steady, Global indices react.

07 Feb 2024

Introduction:

In the global indices market, Asian stocks forge ahead, closely tied to China’s stability measures. However, the Shanghai composite faces a 1.44% decline. European markets, on the other hand, experienced a downturn due to dashed hopes of a rate cut, leading to increased yields. Simultaneously, stock futures worldwide exhibit minimal shifts as investors scrutinize the latest quarterly results during the midpoint of the corporate earnings season.

Market In Focus for today – Dow Jones

On Monday, stocks declined as a surge in Treasury yields raised worries about the Federal Reserve potentially not implementing as significant rate cuts as anticipated.  The Dow Jones Industrial Average dropped 274.30 points, or 0.71%, to settle at 38,380.12.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38586.80 | Positive Crossover | Bullish
  • MA 20: 38544.28 | Positive Crossover | Bullish
  • MA 50: 38215.44 | Positive Crossover | Bullish

Simple:

  • MA 5: 38552.01 | Positive Crossover | Bullish
  • MA 20: 38544.20| Positive Crossover | Bullish
  • MA 50: 38215.44 | Positive Crossover | Bullish

RSI (Relative Strength Index): 58.24| Buy Zone| Bullish

Stochastic Oscillator: 48.15| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 38789.90 | R2: 39238.10
  • S1: 38279.45| S2: 37831.25

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 38341.70 | Take Profit: 38789.90| Stop Loss: 38042.90.

S&P 500:

The S&P 500 concludes higher, and attention shifts to earnings and U.S. interest rates.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4970.06 | Positive Crossover | Bullish
  • MA 20: 4945.28 | Positive Crossover | Bullish
  • MA 50: 4900.44 | Positive Crossover | Bullish

Simple:

  • MA 5: 4970.82 | Positive Crossover | Bullish
  • MA 20: 4945.28| Positive Crossover | Bullish
  • MA 50: 4900.44| Positive Crossover | Bullish

RSI (Relative Strength Index): 62.04| Bullish Zone| Positive

Stochastic Oscillator: 92.63| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4981.80 | R2: 5045.24
  • S1: 4916.80| S2: 4842.53

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4916.80 | Take Profit: 4981.80| Stop Loss: 4881.12.

FTSE 100:

The FTSE-100 Index is currently at 7,682.78. Shortly, it is anticipated that the FTSE-100 will sustain its upward trend, buoyed by positive market sentiment.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7685.60 | Negative Crossover | Bearish
  • MA 20: 7668.26 | Positive Crossover | Bullish
  • MA 50: 7590.37 | Positive Crossover | Bullish

Simple:

  • MA 5: 7686.48 | Negative Crossover | Bearish
  • MA 20: 7668.26| Positive Crossover | Bullish
  • MA 50: 7590.37| Positive Crossover | Bullish

RSI (Relative Strength Index): 57.14| Buying Zone| Buy

Stochastic Oscillator: 70.02| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7689.1 | R2: 7780.7
  • S1: 7629.4| S2: 7564.1

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 7705.7 | Take Profit: 7780.7| Stop Loss: 7658.5.

DAX 40:

European stocks showed minimal movement as investors absorbed a continuous flow of earnings reports and received messages from central bank officials aiming to curb expectations of imminent interest-rate cuts.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17079.53 | Positive Crossover | Bullish
  • MA 20: 17034.35 | Positive Crossover | Bullish
  • MA 50: 16896.08 | Positive Crossover | Bullish

Simple:

  • MA 5: 17077.04| Positive Crossover | Bullish
  • MA 20: 17034.35| Positive Crossover | Bullish
  • MA 50: 16896.08| Positive Crossover | Bullish

RSI (Relative Strength Index): 58.51| Positive Zone| Bullish

Stochastic Oscillator: 88.93|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 17138.6 | R2: 17324.1
  • S1: 16914.3| S2: 16672.7

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 16966.1 | Take Profit: 17138.6| Stop Loss: 16853.9.

Elsewhere in the Indices Market:

Asian stocks advance, with much hinging on China’s stability initiatives.

The Shanghai composite is down at 1.44%. Overall, the Singapore MSCI is up 1.11% to 279.02. Over in Hong Kong, the Hang Seng Index down 0.34% to 16,081.89. In Japan, the Nikkei 225 was up 0.11% to 36,119.92, while the Topix index was up 0.42% to 2549.95. South Korea’s Kospi up 1.30% to 2,609.58. Australia S&P/ASX 200 is up 0.45% to, 7,615.80.

European stocks decline as shattered expectations for a rate cut lead to higher yields.

The DAX futures contract in Germany traded 0.26 lower, CAC 40 futures in France down 0.09% to 7,631.79, and the UK 100 futures contract in the U.K. down 0.38% to 7,651.93.

Stock futures show minimal movement as investors analyze the latest quarterly results.

On Tuesday, stock futures showed minimal movement as investors examined another set of quarterly results, marking the midpoint of the corporate earnings season.

Indexes: Dow down 0.66%, S&P 500- down 0.41%, Nasdaq down 0.45%.

Corporate News:

Netflix, Inc. (NFLX) is down 1.10% at 555.88, Tesla, Inc. (TSLA) is up 2.23% at 185.10, and Apple Inc. (AAPL) is up 0.86% at 189.30. Goldman Sachs Group Inc (GS) is up 0.51% at 384.99, and Morgan Stanley (MS) is up 0.24% at 86.10.

Key Economic Events & Data Release Today:

(NZD) Employment Change (QoQ) (Q4) Actual 0.4%, Forecast 0.3%, Previous –0.2% at 03:15.

(EUR) German Industrial Production (MoM) (Dec) Actual –1.6%, Forecast –0.4%, Previous –0.7% at 12:30.

(USD) Crude Oil Inventories Forecast 1.700M, Previous 1.234M at 21:00.