. Daily Index Analysis - Futures Dip Ahead of Key Data

Daily Index Analysis – Futures Dip Ahead of Key Data

Daily Index Analysis – Futures Dip Ahead of Key Data

31 May 2024


Introduction:

Asian stocks rose on Friday, buoyed by U.S. economic data signalling a slowdown in momentum, while European stocks remained volatile with rising euro zone inflation. In the U.S., stock futures dipped as investors awaited a key inflation report amid a flurry of corporate earnings, capping off a winning month with a losing week.

Market In Focus for today – Nasdaq 100

Futures decline ahead of crucial inflation data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18697.04 | Negative Crossover | Bearish
  • MA 20: 18740.92 | Negative Crossover | Bearish
  • MA 50: 18629.86 | Negative Crossover | Bearish

Simple:

  • MA 5: 18742.59 | Negative Crossover | Bearish
  • MA 20: 18788.39| Negative Crossover | Bearish
  • MA 50: 18673.64 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.61| Bearish Zone| Negative


Stochastic Oscillator: 1.11| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 18738.71 | R2: 19038.17
  • S1: 18429.90| S2: 17961.99


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion: Sell Limit: 18691.92 | Take Profit: 18336.31| Stop Loss: 18972.66.

S&P 500:

S&P 500 Futures tick lower as Investors Await Key U.S. Inflation Data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5271.01 | Negative Crossover | Bearish
  • MA 20: 5288.32 | Negative Crossover | Bearish
  • MA 50: 5282.80 | Negative Crossover | Bearish

Simple:

  • MA 5: 5277.33 | Negative Crossover | Bearish
  • MA 20: 5295.93| Negative Crossover | Bearish
  • MA 50: 5304.48 | Negative Crossover | Bearish

RSI (Relative Strength Index): 34.51| Sell Zone| Bearish


Stochastic Oscillator: 4.3 | Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 5286.22 | R2: 5361.63
  • S1: 5226.46| S2: 5153.90


Overall Sentiment: Bearish| Market Direction: Sell


Trade Suggestion:  Sell Limit : 5299.02 | Take Profit: 5226.46| Stop Loss: 5345.98.

FTSE 100:

FTSE 100 Ends 6-Session Losing Streak.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8247.33 | Positive Crossover | Bullish
  • MA 20: 8278.46 | Positive Crossover | Bullish
  • MA 50: 8296.77 | Negative Crossover | Bearish

Simple:

  • MA 5: 8228.06 | Positive Crossover | Bullish
  • MA 20: 8285.52| Positive Crossover | Bullish
  • MA 50: 8364.68 | Negative Crossover | Bearish

RSI (Relative Strength Index): 49.38| Buying Zone| Bullish


Stochastic Oscillator: 86.23| Buying Zone | Positive

Resistance And Support Levels:

  • R1: 8365.2 | R2: 8440.6
  • S1: 8214.7| S2: 8110.3


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 8343.1 | Take Profit: 8214.2| Stop Loss: 8435.0.

Euro Stoxx 50:

European stocks displayed volatility on Friday following the release of new Eurozone data indicating a slight increase in inflation for May, just before an expected rate cut from the European Central Bank next week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4993.14 | Positive Crossover | Bullish
  • MA 20: 5008.02 | Negative Crossover | Bearish
  • MA 50: 5021.99 | Negative Crossover | Bearish

Simple:

  • MA 5: 4990.6 | Positive Crossover | Bullish
  • MA 20: 5013.3| Negative Crossover | Bearish
  • MA 50: 5046.02 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.02| Neutral Zone| Neutral


Stochastic Oscillator: 52.1| Positive Zone | Positive

Resistance And Support Levels:

  • R1: 5046 | R2: 5144
  • S1: 4937| S2: 4826


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Sell Limit : 5007 | Take Profit: 4888| Stop Loss: 5082.


Elsewhere in the Indices Market:


Asian stocks rose on Friday as the latest U.S. economic data indicated a slowdown in momentum.

The Shanghai composite is down at 0.16%. Overall, the Singapore MSCI up 0.26% to 308.90. Over in Hong Kong, the Hang Seng Index down 0.23% to 18,079.61. In Japan, the Nikkei 225 up 1.14% to 38,487.90, while the Topix index was up 1.70% to 2726.49. South Korea’s Kospi up 0.04% to 2,636.52. Australia S&P/ASX 200 up 0.96% to, 7,701.70.

European stocks remain volatile as euro zone inflation edges higher.

The DAX futures contract in Germany traded 0.08 lower, CAC 40 futures in France down 0.03% to 7,976.23 and the UK 100 futures contract in the U.K. up 0.48% to 8,270.65.

US Stock futures dip as investors await the inflation report.

U.S. stock futures edged down Friday as investors assessed a slew of corporate earnings before a crucial inflation report. Despite this, Wall Street was poised for a losing week to close out an otherwise successful month for stocks.

Indexes: Dow down 0.1%, S&P 500- down 0.3%, Nasdaq down 0.1%.


Corporate News:

Netflix, Inc. (NFLX) down 1.06% at 647.66, Tesla, Inc (TSLA) up 1.48% at 178.79, Apple Inc. (AAPL) up 0.53% at 191.29. Goldman Sachs Group Inc (GS) down 0.92% at 450.23, Morgan Stanley (MS) down 0.041% at 97.23.



Key Economic Events & Data Release Today:

(JPY) Retail Sales (YoY) (Apr) Forecast 1.8%, Previous 1.2% at 05:20.

(CNY) Manufacturing PMI (May) Forecast 50.5, Previous 50.4 at 07:00.

(NZD) Annual Budget Release at 07:30.

(EUR) CPI (YoY) (May) Forecast 2.5%, Previous 2.4% at 14:30.

(CAD) GDP (QoQ) (Q1) Previous 0.2% at 18:00.

(USD) Core PCE Price Index (MoM) (Apr) Forecast 0.3%, Previous 0.3% at 18:00.

(CAD) GDP (MoM) (Mar) Forecast 0.0%, Previous 0.2% at 18:00.

(CAD) GDP (MoM) (Apr) at 18:01.