. Daily Index Analysis - Nasdaq soars, S&P 500 hits highs, DAX stabilizes.

Daily Index Analysis – Nasdaq soars, S&P 500 hits highs, DAX stabilizes.

Daily Index Analysis – Nasdaq soars, S&P 500 hits highs, DAX stabilizes.

19 Dec 2023

Introduction:

In the global indices market, Asian stocks traded lower ahead of the Bank of Japan’s interest rate decision. Meanwhile, European stocks eased as ECB officials tempered rate cut optimism. Wall Street closed higher, extending a rally fueled by expectations of Federal Reserve interest rate cuts amidst a week of crucial economic data.

Market In Focus for today – Nasdaq 100

The Nasdaq extends its climb for the eighth consecutive day, with both indexes contributing to a seven-week upward trend.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16894.05 | Positive Crossover | Bullish
  • MA 20: 16611.02 | Positive Crossover | Bullish
  • MA 50: 16289.66 | Positive Crossover | Bullish

Simple:

  • MA 5: 16900.14 | Positive Crossover | Bullish
  • MA 20: 16566.73| Positive Crossover | Bullish
  • MA 50: 16207.75 | Positive Crossover | Bullish

RSI (Relative Strength Index): 78.79| Buy Zone| Bullish

Stochastic Oscillator: 100.00|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 16972.70 | R2: 17461.15
  • S1: 16406.10| S2: 15790.66

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit: 16386.56 | Take Profit: 16933.62| Stop Loss: 16044.65.

S&P 500:

On Monday, the S&P 500 experienced an increase, sustaining the positive momentum observed throughout its seven-week winning streak.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4786.86 | Positive Crossover | Bullish
  • MA 20: 4722.28 | Positive Crossover | Bullish
  • MA 50: 4643.83 | Positive Crossover | Bullish

Simple:

  • MA 5: 4788.09 | Positive Crossover | Bullish
  • MA 20: 4709.34| Positive Crossover | Bullish
  • MA 50: 4627.29| Positive Crossover | Bullish

RSI (Relative Strength Index): 80.26| Buy Zone| Bullish

Stochastic Oscillator: 85.79|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4806.71 | R2: 4902.85
  • S1: 4696.50| S2: 4612.09

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 4696.50 | Take Profit: 4794.99| Stop Loss: 4635.54.

DAX 40:

After enjoying six consecutive weeks of gains that propelled the DAX 40 to its record high near the 17,000 level, the index is stabilizing in anticipation of Wednesday’s Gfk consumer confidence data.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16886.11 | Negative Crossover | Bearish
  • MA 20: 16864.30 | Positive Crossover | Bullish
  • MA 50: 16608.51 | Positive Crossover | Bullish

Simple:

  • MA 5: 16882.10 | Negative Crossover | Bearish
  • MA 20: 16914.55| Positive Crossover | Bullish
  • MA 50: 16590.16 | Positive Crossover | Bullish

RSI (Relative Strength Index): 55.94| Buy Zone| Bullish

Stochastic Oscillator: 2.15|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 16977.7 | R2: 17193.2
  • S1: 16744.8| S2: 16471.1

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit: 16744.8 | Take Profit: 17018.5| Stop Loss: 16558.5.

Euro Stoxx 50:

On Monday, European stocks pulled back following robust gains in previous weeks, with a decline in auto shares and statements from central bank officials moderating expectations for early interest rate cuts next year.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4568.3 | Negative Crossover | Bearish
  • MA 20: 4557.7 | Positive Crossover | Bullish
  • MA 50: 4492.3 | Positive Crossover | Bullish

Simple:

  • MA 5: 4568.6 | Negative Crossover | Bearish
  • MA 20: 4570.4| Negative Crossover | Bearish
  • MA 50: 4481.8 | Positive Crossover | Bullish

RSI (Relative Strength Index): 58.02| Buy Zone| Bullish

Stochastic Oscillator: 1.51|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4613 | R2: 4700
  • S1: 4551| S2: 4435

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Sell: 4539 | Take Profit: 4435| Stop Loss: 4618.

Elsewhere in the Indices Market:

Asian stocks market traded lower ahead of BoJ’s interest rate decision.

The Shanghai composite is up at 0.05%. Overall, the Singapore MSCI up 0.49% to 274.93. Over in Hong Kong, the Hang Seng Index is down 0.75% to 16,505.00. In Japan, the Nikkei 225 was up 1.41% to 33,219.39, while the Topix index was up 0.73% to 2,333.81. South Korea’s Kospi up 0.07% to 2,568.55. Australia S&P/ASX 200 is up 0.84% to, 7,489.10.

European stocks ease as ECB officials temper rate cut optimism.

The DAX futures contract in Germany traded 0.41 higher, CAC 40 futures in France up 0.03% to 7,571.24 and the UK 100 futures contract in the U.K. up 0.28% to 7,636.00.

Wall Street closes higher, extending rate-cut rally.

On Monday, U.S. stocks advanced as investors analyzed increasing anticipations of Federal Reserve interest rate cuts in the upcoming year and anticipated a week filled with critical economic data.

Indexes: Dow up 0.05%, S&P 500- up 0.45%, Nasdaq up 0.61%.

Corporate News:

Netflix, Inc. (NFLX) is up 2.98% at 486.12, Tesla, Inc. (TSLA) is down 0.56% at 252.08, and Apple Inc. (AAPL) is down 0.85% at 195.89. Goldman Sachs Group Inc (GS) is down 1.08% at 376.40, and Morgan Stanley (MS) is down 0.90% at 90.76.

Key Economic Events & Data Release Today:

(AUD) RBA Meeting Minutes at 06:00.

(JPY) BoJ Monitory Policy Meeting at 08:00.

(EUR) CPI (YoY) (Nov) Forecast 2.4%, Previous 2.9% at 15:30.

(CAD) Core CPI (MoM) (Nov) Previous 0.3% at 19:00.

(USD) Building Permits (Nov) Forecast 1.470M, Previous 1.498M at 19:00.