. Daily Index Analysis - Investor Jitters as S&P 500 Drops Below 4,200.

Daily Index Analysis – Investor Jitters as S&P 500 Drops Below 4,200.

Daily Index Analysis – Investor Jitters as S&P 500 Drops Below 4,200.

26 Oct 2023

Introduction:

Turning our attention to the global indices market, Asian markets reflect a bearish sentiment in response to sharp declines on Wall Street. Notable figures include the Shanghai Composite, up 0.48%, while the Nikkei 225 in Japan saw a 1.41% drop. European shares also face a downward trend ahead of the ECB decision, with the DAX in Germany down 1.41%, CAC 40 in France down 0.69%, and the UK 100 in the U.K. down 0.60%. The bearish sentiment extends to Wall Street, with Alphabet’s disappointing earnings and rising U.S. Treasury yields contributing to the decline.

Market In Focus for today – S&P 500

The S&P 500 index marked its fifth drop in six days, concluding the session below the significant 4,200 level.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4207.89 | Negative Crossover | Bearish
  • MA 20: 4266.47 | Negative Crossover | Bearish
  • MA 50: 4313.06 | Negative Crossover | Bearish

Simple:

  • MA 5: 4216.64 | Negative Crossover | Bearish
  • MA 20: 4277.08| Negative Crossover | Bearish
  • MA 50: 4322.53 | Negative Crossover | Bearish

RSI (Relative Strength Index): 26.54 | Selling Zone| Bearish

Stochastic Oscillator: 3.2 | Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4257.87 | R2: 4380.42
  • S1: 4170.34| S2: 4015.69

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 4117.81 | Take Profit: 4015.69| Stop Loss: 4187.84.

Elsewhere in the Indices Market

Asian Markets trade lower following sharp cuts on Wall St.

The Shanghai composite is up at 0.48%. Overall, the Singapore MSCI down 0.94% to 272.95. Over in Hong Kong, the Hang Seng Index down 0.24% to 17,044.61. In Japan, the Nikkei 225 down 1.41% to 30,601.78, while the Topix index was down 1.34% to 2,224.25. South Korea’s Kospi down 2.71% to 2,299.08. Australia S&P/ASX 200 down 0.61% to, 6,812.30.

European shares slump ahead of ECB verdict, dismal earnings weigh.

The DAX futures contract in Germany traded 1.41 lower, CAC 40 futures in France down 0.69% to 6,867.38 and the UK 100 futures contract in the U.K. down 0.60% to 7,369.72.

Wall St declines as Alphabet disappoints, Treasury yields rise.

US equities experienced a widespread decline on Wednesday, with Alphabet’s stock taking a hit following underwhelming earnings from its parent company, Google. The situation was compounded by an increase in U.S. Treasury yields, reigniting concerns of prolonged higher interest rates.

Indexes: Dow up 0.32%, S&P 500- up 1.43%, Nasdaq up 2.43%.

Corporate News:

Netflix Inc (NFLX) down 0.60% at 411.25, Tesla Inc. (TSLA) down 1.89% at 212.42, Walmart Inc. (WMT) down 0.30% at 162.76. Goldman Sachs Group Inc (GS) down 0.81% at 296.76, Morgan Stanley (MS) down 0.22% at 71.40.

Key Economic Events & Data Release Today:

(USD) Fed Chair Powell Speaks at 02:05.

(EUR) ECB Monetary Policy Statement at 17:45.

(EUR) ECB Interest Rate Decision (Oct) Forecast 4.50%, Previous 4.50% at 17:45.

(CAD) Manufacturing Sales (MoM) Previous 0.7% at 18:00.

(USD) Initial Jobless Claims Forecast 208K, Previous 198K at 18:00.

(USD) GDP (QoQ) (Q3) Forecast 4.3%, Previous 2.1% at 18:00.

(EUR) ECB President Lagarde Speak’s at 19:45.