. Daily Index Analysis - Nasdaq Gains, Europe Dips Ahead of Inflation Data

Daily Index Analysis – Nasdaq Gains, Europe Dips Ahead of Inflation Data

Daily Index Analysis – Nasdaq Gains, Europe Dips Ahead of Inflation Data

17 May 2024

Introduction:

Global indices: Asia holds steady Despite some uncertainty about when the US will cut interest rates, most Asian markets saw modest gains. The Shanghai composite even rose over 1%. Europe dips before inflation data: European stocks are down slightly as investors wait for a crucial inflation report. US cools after Dow’s 40,000: After the Dow Jones Industrial Average reached a record 40,000, US stocks lost some steam. This seems to be due to investors revaluating their expectations for interest rate cuts, considering recent positive corporate earnings and lower inflation data.

Market In Focus for today – Nasdaq 100

The NASDAQ 100 maintains some upward momentum as markets remain fixated on the potential for Federal Reserve rate cuts later this year.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18572.56 | Positive Crossover | Bullish
  • MA 20: 18441.76 | Positive Crossover | Bullish
  • MA 50: 18210.86 | Positive Crossover | Bullish

Simple:

  • MA 5: 18565.11 | Positive Crossover | Bullish
  • MA 20: 18411.31| Positive Crossover | Bullish
  • MA 50: 18104.73 | Positive Crossover | Bullish

RSI (Relative Strength Index): 74.23| Bullish Zone| Positive


Stochastic Oscillator: 55.1| Buying Zone | Negative

Resistance And Support Levels:

  • R1: 18729.46 | R2: 18938.67
  • S1: 18433.70| S2: 18166.79


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Buy Limit: 18426.48 | Take Profit: 18700.60| Stop Loss: 18260.57.

S&P 500:

Despite breaching new historical highs, the S&P 500 shows bullish sentiment, indicating an appetite for considerably higher levels.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5304.60 | Positive Crossover | Bullish
  • MA 20: 5275.01 | Positive Crossover | Bullish
  • MA 50: 5220.19 | Positive Crossover | Bullish

Simple:

  • MA 5: 5303.79 | Positive Crossover | Bullish
  • MA 20: 5272.74| Positive Crossover | Bullish
  • MA 50: 5193.99 | Positive Crossover | Bullish

RSI (Relative Strength Index): 71.58 | Bullish Zone| Positive


Stochastic Oscillator: 40.12 | Neutral Zone | Negative

Resistance And Support Levels:

  • R1: 5348.07 | R2: 5448.40
  • S1: 5247.74| S2: 5152.98


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5228.23 | Take Profit: 5328.56| Stop Loss: 5169.71.

FTSE 100:

FTSE 100 shows lackluster performance as the rally on Wall Street ends.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8429.44 | Negative Crossover | Bearish
  • MA 20: 8406.66 | Positive Crossover | Bullish
  • MA 50: 8297.45 | Positive Crossover | Bullish

Simple:

  • MA 5: 8443.49 | Negative Crossover | Bearish
  • MA 20: 8426.98| Negative Crossover | Bearish
  • MA 50: 8286.92 | Positive Crossover | Bullish

RSI (Relative Strength Index): 56.53| Buy Zone| Bullish


Stochastic Oscillator: 0| Selling Zone | Neutral

Resistance And Support Levels:

  • R1: 8485.54 | R2: 8550.00
  • S1: 8364.30| S2: 8258.71


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 8292.2 | Take Profit: 8457.2| Stop Loss: 82210.

Euro Stoxx 50:

European stock markets saw a slight retreat on Friday, with uncertainty surrounding future interest rate adjustments as investors awaited the release of crucial inflation data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5071.81 | Negative Crossover | Bearish
  • MA 20: 5063.44 | Negative Crossover | Bearish
  • MA 50: 5032.72 | Positive Crossover | Bullish

Simple:

  • MA 5: 5081.01 | Negative Crossover | Bearish
  • MA 20: 5075.01| Negative Crossover | Bearish
  • MA 50: 5015.28 | Positive Crossover | Bullish

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


Stochastic Oscillator: 3.46| Selling Zone | Negative

Resistance And Support Levels:

  • R1: 5093 | R2: 5141
  • S1: 5034| S2: 4932


Overall Sentiment: Neutral | Market Direction: Buy


Trade Suggestion:  Buy Limit : 5048 | Take Profit: 5116| Stop Loss: 5005.


Elsewhere in the Indices Market:


Asian shares ease on uncertainty over timing of US rate cuts.

The Shanghai composite is up at 1.01%. Overall, the Singapore MSCI up 0.87% to 311.40. Over in Hong Kong, the Hang Seng Index up 0.91% to 19,553.61. In Japan, the Nikkei 225 down 0.34% to 38,787.38, while the Topix index was up 0.24% to 2737.54. South Korea’s Kospi down 0.01% to 2,724.62. Australia S&P/ASX 200 down 0.85% to, 7,814.40.

European stocks decline ahead of key inflation release.

The DAX futures contract in Germany traded 0.34 lower, CAC 40 futures in France down 0.41% to 8,403.90 and the UK 100 futures contract in the U.K. down 0.41% to 8,403.90.

US stocks lose momentum following the Dow’s achievement of the milestone 40,000 level.

U.S. stocks concluded Thursday with losses as the Dow (.DJI) hit an intra-day peak of 40,000 for the first time. Investors adjusted their rate-cut predictions after observing a decrease in inflation and positive corporate earnings outcomes.

Indexes: Dow down 0.10%, S&P 500- down 0.21%, Nasdaq down 0.26%.


Corporate News:

Netflix, Inc. (NFLX) down 0.49% at 610.52, Tesla, Inc (TSLA) up 0.6% at 189.84, Apple Inc. (AAPL) up 0.06% at 189.84. Goldman Sachs Group Inc (GS) down 0.34% at 464.52, Morgan Stanley (MS) down 0.94% at 99.58.



Key Economic Events & Data Release Today:

(CNY) Industrial Production (YoY) (Apr) Forecast 5.5%, Previous 4.5% at 07:30.

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