. Daily Index Analysis - Nasdaq 100 Falls Ahead of Data-Heavy Week

Daily Index Analysis – Nasdaq 100 Falls Ahead of Data-Heavy Week

Daily Index Analysis – Nasdaq 100 Falls Ahead of Data-Heavy Week

03 Jun 2024


Introduction:

Global markets show mixed signals as investors weigh central bank policies and economic data. Asian markets climb on hopes of rate cuts and China’s factory rebound, with gains in Hong Kong and South Korea leading the way. European markets open higher, but UK stocks face headwinds from a large drop in GSK’s share price. In the US, futures trading is cautious ahead of key jobs data, following a strong month for Wall Street.

Market In Focus for today – Nasdaq 100

The Nasdaq 100 fell ahead of a data-heavy week, as investors awaited key economic indicators that could influence the Federal Reserve’s interest rate decisions.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18666.04 | Positive Crossover | Bullish
  • MA 20: 18707.92 | Positive Crossover | Bullish
  • MA 50: 18629.86 | Negative Crossover | Bearish

Simple:

  • MA 5: 18644.59 | Negative Crossover | Bearish
  • MA 20: 18765.39| Negative Crossover | Bearish
  • MA 50: 18702.64 | Negative Crossover | Bearish

RSI (Relative Strength Index): 46.61| Neutral Zone| Neutral


Stochastic Oscillator: 27.19| 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:

The S&P 500 kicked off the month with a climb, fuelled by a surge in Nvidia’s share price.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5294.01 | Positive Crossover | Bullish
  • MA 20: 5296.32 | Positive Crossover | Bullish
  • MA 50: 5287.80 | Negative Crossover | Bearish

Simple:

  • MA 5: 5280.33 | Positive Crossover | Bullish
  • MA 20: 5296.93| Positive Crossover | Bullish
  • MA 50: 5310.48 | Negative Crossover | Bearish

RSI (Relative Strength Index): 54.84| Buy Zone| Bullish


Stochastic Oscillator: 95.01 | Buy Zone | Positive

Resistance And Support Levels:

  • R1: 5333.17 | R2: 5368.63
  • S1: 5226.46| S2: 5153.90


Overall Sentiment: Neutral| Market Direction: Sell


Trade Suggestion:  Sell Limit : 5324.64 | Take Profit: 5226.46| Stop Loss: 5363.98.

FTSE 100:

The FTSE 100 kicked off the week on a positive note, rising at the market open, alongside a broader uptick in U.K. share prices.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8290.33 | Positive Crossover | Bullish
  • MA 20: 8293.46 | Positive Crossover | Bullish
  • MA 50: 8300.77 | Negative Crossover | Bearish

Simple:

  • MA 5: 8259.06 | Positive Crossover | Bullish
  • MA 20: 8273.52| Positive Crossover | Bullish
  • MA 50: 8361.68 | Negative Crossover | Bearish

RSI (Relative Strength Index): 53.45| Buying Zone| Bullish


Stochastic Oscillator: 89.9| Buying Zone | Neutral

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 rose on Monday, anticipating an ECB rate cut, but U.S. jobs data looming this week keeps inflation concerns in focus.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5012.14 | Positive Crossover | Bullish
  • MA 20: 5014.02 | Negative Crossover | Bearish
  • MA 50: 5022.99 | Negative Crossover | Bearish

Simple:

  • MA 5: 4994.6 | Positive Crossover | Bullish
  • MA 20: 5012.3| Positive Crossover | Bullish
  • MA 50: 5044.02 | Negative Crossover | Bearish

RSI (Relative Strength Index): 55.36| Buying Zone| Bullish


Stochastic Oscillator: 98.34| Positive Zone | Positive

Resistance And Support Levels:

  • R1: 5079 | R2: 5141
  • S1: 4937| S2: 4826


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 5061 | Take Profit: 4942| Stop Loss: 5146.


Elsewhere in the Indices Market:


Asian markets surge as investors bet on central banks easing borrowing costs and China’s factories ramp up production.

The Shanghai composite is down at 0.27%. Overall, the Singapore MSCI up 0.75% to 311.23. Over in Hong Kong, the Hang Seng Index up 1.79% to 18,403.04. In Japan, the Nikkei 225 up 1.13% to 38,923.03, while the Topix index was up 0.92% to 2798.07. South Korea’s Kospi up 1.74% to 2,682.52. Australia S&P/ASX 200 up 0.77% to, 7,761.00.

UK stocks rise, but gains are limited by a big drop in GSK’s share price, even though manufacturing activity strengthens.

The DAX futures contract in Germany traded 0.79 higher, CAC 40 futures in France up 0.44% to 8,028.09 and the UK 100 futures contract in the U.K. up 0.24% to 8,295.05.

U.S. markets start June with mixed results as investors wait for a crucial report on jobs.

U.S. stock futures lack direction ahead of June trading, following a month of strong gains for major Wall Street indexes.

Indexes: Dow down 0.15%, S&P 500- up 0.26%, Nasdaq up 0.65%.


Corporate News:

Netflix, Inc. (NFLX) up 0.22% at 641.62, Tesla, Inc (TSLA) up 0.26% at 178.08, Apple Inc. (AAPL) up 0.33% at 192.25. Goldman Sachs Group Inc (GS) up 1.40% at 456.52, Morgan Stanley (MS) down 0.031% at 97.84.



Key Economic Events & Data Release Today:

(CNY) Caixin Manufacturing PMI (May) Forecast 51.6, Previous 51.4 at 07:15.

(EUR) Spanish Manufacturing PMI (May) Forecast 52.5, Previous 52.2 at 12:45.

(EUR) German Manufacturing PMI (May) Forecast 45.4, Previous 42.5 at 13:25.

 (USD) Manufacturing PMI (May) Forecast 50.9, Previous 49.4 at 19:15. 

(USD) ISM Manufacturing PMI (May) Forecast 49.8, Previous 49.2 at 19:30.