. Daily Index Analysis - Global markets in crisis, Dow and S&P tumble.

Daily Index Analysis – Global markets in crisis, Dow and S&P tumble.

Daily Index Analysis – Global markets in crisis, Dow and S&P tumble.

16 Jan 2024

Introduction:

Global markets face a downturn as Asian indices hit a one-month low, with significant declines in Shanghai, Hong Kong, and other key markets. European stocks follow suit, influenced by rising yields and China’s decision to forgo a rate cut. U.S. stock futures also show a decline as investors await crucial data and bank earnings, providing crucial insights into the state of the American consumer.

Market In Focus for today – Dow Jones

Closing the trading session, U.S. stocks exhibit a mixed performance, with the Dow Jones Industrial Average registering a 0.31% decline.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37778.74 | Negative Crossover | Bearish
  • MA 20: 37783.82 | Negative Crossover | Bearish
  • MA 50: 37815.10 | Negative Crossover | Bearish

Simple:

  • MA 5: 37769.05 | Negative Crossover | Bearish
  • MA 20: 37783.12| Negative Crossover | Bearish
  • MA 50: 37815.94 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.46| Neutral Zone| Neutral

Stochastic Oscillator: 7.95|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 37860.33 | R2: 38122.41
  • S1: 37669.72| S2: 37193.21

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 37574.42 | Take Profit: 37193.21| Stop Loss: 37824.59.

S&P 500:

Tuesday morning witnesses a decline in stock futures as Wall Street anticipates additional data, with S&P 500 futures showing a 0.47% dip.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4800.50 | Negative Crossover | Bearish
  • MA 20: 4800.05 | Negative Crossover | Bearish
  • MA 50: 4793.64 | Negative Crossover | Bearish

Simple:

  • MA 5: 4804.12 | Negative Crossover | Bearish
  • MA 20: 4799.72| Negative Crossover | Bearish
  • MA 50: 4793.64| Negative Crossover | Bearish

RSI (Relative Strength Index): 45.40| Neutral Zone| Neutral

Stochastic Oscillator: 7.41|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4834.98 | R2: 4892.85
  • S1: 4785.80| S2: 4712.03

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Stop Sell: 4774.23 | Take Profit: 4712.03| Stop Loss: 4820.52.

FTSE 100:

The FTSE 100 approaches a one-month low, influenced by risk-averse sentiments prevailing in global markets.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7597.83 | Negative Crossover | Bearish
  • MA 20: 7657.41 | Negative Crossover | Bearish
  • MA 50: 7692.13 | Negative Crossover | Bearish

Simple:

  • MA 5: 7603.74 | Negative Crossover | Bearish
  • MA 20: 7657.42| Negative Crossover | Bearish
  • MA 50: 7692.13| Negative Crossover | Bearish

RSI (Relative Strength Index): 34.42| Selling Zone| Sell

Stochastic Oscillator: 19.24|Sell Zone | Sell

Resistance And Support Levels:

  • R1: 7606.0 | R2: 7707.2
  • S1: 7569.2| S2: 7479.1

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Limit Sell: 7591.3 | Take Profit: 7488.3| Stop Loss: 7655.7.

DAX 40:

European stock markets are on a downtrend, with a focus on Davos. In early trading, Germany’s DAX is experiencing declines, impacted by a combination of sector-specific performances and overarching economic worries.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16714.08 | Negative Crossover | Bearish
  • MA 20: 16794.25 | Negative Crossover | Bearish
  • MA 50: 16824.28 | Negative Crossover | Bearish

Simple:

  • MA 5: 16742.06 | Negative Crossover | Bearish
  • MA 20: 16794.01| Negative Crossover | Bearish
  • MA 50: 16824.03| Negative Crossover | Bearish

RSI (Relative Strength Index): 39.73| Negative Zone| Neutral

Stochastic Oscillator: 0.21|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 16902.0 | R2: 17199.0
  • S1: 16613.8| S2: 16168.3

Overall Sentiment: Bearish | Market Direction: Buy

Trade Suggestion:  Stop Sell: 16526.4 | Take Profit: 16168.3| Stop Loss: 16779.7.

Elsewhere in the Indices Market:

Asian stock market declines to a one-month low.

The Shanghai composite is down at 0.27%. Overall, the Singapore MSCI is down 0.78% to 278.07. Over in Hong Kong, the Hang Seng Index is down 2.16% to 15,865.92. In Japan, the Nikkei 225 was down 0.79% to 35,619.18, while the Topix index was down 0.82% to 2,503.98. South Korea’s Kospi down 1.12% to 2,525.05. Australia S&P/ASX 200 is down 1.09% to, 7,414.80.

European stocks decline amid rising yields, China skips rate cut.

The DAX futures contract in Germany traded 0.52 lower, CAC 40 futures in France down 0.37% to 7,384.53, and the UK 100 futures contract in the U.K. down 0.45% to 7,560.51.

At the beginning of the abbreviated trading week, U.S. stock futures show a decline.

Tuesday morning sees a dip in stock futures as Wall Street awaits additional data and bank earnings, offering insights into the condition of the US consumer.

Indexes: Dow down 0.36%, S&P 500- down 0.47%, Nasdaq down 0.73%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.14% at 492.16, Tesla, Inc. (TSLA) is down 3.67% at 218.89, and Apple Inc. (AAPL) is up 0.18% at 185.92. Goldman Sachs Group Inc (GS) is down 0.53% at 377.75, and Morgan Stanley (MS) is down 0.89% at 89.70.

Key Economic Events & Data Release Today:

(AUD) Building Approvals (MoM) Forecast 1.6%, Previous 7.5% at 06:00.

(EUR) German CPI (MoM) (Dec) Forecast 0.1%, Previous –0.4% at 12:30.

(CAD) CPI (MoM) (Dec) Forecast –0.3%, Previous 0.1% at 19:00.

(CAD) Core CPI (MoM) (Dec) Previous 0.1% at 19:00.

(GBP) BoE Gov Bailey Speaks at 20:30.