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Daily Index Analysis – Netflix, S&P 500 Records, DAX Surge.

Daily Index Analysis – Netflix, S&P 500 Records, DAX Surge.

25 Jan 2024

Introduction:

In the Asian indices market, most shares see gains, particularly in China following recent policy moves. However, European shares decline at the open, awaiting updates from the ECB on rates. Meanwhile, U.S. equities advance, propelled by positive earnings and economic data, leading to a rise in yields. Global markets reflect optimism, with MSCI’s global equity index hitting a near two-year high, fuelled by encouraging developments in Europe, the U.S., and expectations of Chinese stimulus support.

Market In Focus for today – DOW JONES

The Dow Jones Industrial Average briefly rallied 150 points Wednesday, as Wall Street reacted to Netflix’s (NFLX) earnings report.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38089.54 | Negative Crossover | Bearish
  • MA 20: 37908.35 | Positive Crossover | Bullish
  • MA 50: 37809.36 | Positive Crossover | Bullish

Simple:

  • MA 5: 38103.05 | Negative Crossover | Bearish
  • MA 20: 37908.37| Positive Crossover | Bullish
  • MA 50: 37809.31 | Positive Crossover | Bullish

RSI (Relative Strength Index): 57.43| Buy Zone| Bullish

Stochastic Oscillator: 13.31| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 38299.50 | R2: 38795.01
  • S1: 37969.16| S2: 37308.48

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 37728.91 | Take Profit: 38299.50| Stop Loss: 37308.48.

S&P 500:

The S&P 500 achieves its third consecutive record-high closing.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4901.15 | Negative Crossover | Bearish
  • MA 20: 4856.22 | Positive Crossover | Bullish
  • MA 50: 4811.77 | Positive Crossover | Bullish

Simple:

  • MA 5: 4905.67 | Negative Crossover | Bearish
  • MA 20: 4856.19| Positive Crossover | Bullish
  • MA 50: 4811.76| Positive Crossover | Bullish

RSI (Relative Strength Index): 68.09| Bullish Zone| Positive

Stochastic Oscillator: 47.09|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 4932.77 | R2: 5013.85
  • S1: 4843.31| S2: 4711.91

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4823.74 | Take Profit: 4932.77| Stop Loss: 4756.64.

DAX 40:

Wednesday saw a substantial uptick in European markets, fueled by optimistic preliminary PMI data from the Eurozone and strong earnings reports from prominent technology and energy firms.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16922.94 | Positive Crossover | Bullish
  • MA 20: 16747.00 | Positive Crossover | Bullish
  • MA 50: 16757.62 | Positive Crossover | Bullish

Simple:

  • MA 5: 16941.00 | Positive Crossover | Bullish
  • MA 20: 16747.85| Positive Crossover | Bullish
  • MA 50: 16757.66| Positive Crossover | Bullish

RSI (Relative Strength Index): 60.34| Buying Zone| Buy

Stochastic Oscillator: 80.62|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 16980.6 | R2: 17199.0
  • S1: 16718.6| S2: 16465.3

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 16736.1 | Take Profit: 17146.6| Stop Loss: 16491.5.

FTSE 100:

Despite today’s mixed intraday performance, the primary downtrend remains unaffected, as the index continues to stay within the significant trading range observed last Wednesday.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7528.23 | Negative Crossover | Bearish
  • MA 20: 7499.09 | Positive Crossover | Bullish
  • MA 50: 7599.62 | Negative Crossover | Bearish

Simple:

  • MA 5: 7532.01 | Negative Crossover | Bearish
  • MA 20: 7499.20| Positive Crossover | Bullish
  • MA 50: 7599.90| Negative Crossover | Bearish

RSI (Relative Strength Index): 46.04| Positive Zone| Bullish

Stochastic Oscillator: 89.03|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 7587.6 | R2: 7661.2
  • S1: 7514.0| S2: 7433.1

Overall Sentiment: Bearish | Market Direction: Neutral

Trade Suggestion:  Stop Sell: 7499.3 | Take Profit: 7412.8| Stop Loss: 7556.3.

Elsewhere in the Indices Market:

Most Asian shares experienced an uptick, led by gains in the Chinese market following policy moves.

The Shanghai composite is up at 3.03%. Overall, the Singapore MSCI is down 0.14% to 277.45. Over in Hong Kong, the Hang Seng Index is up 1.96% to 16,211.96. In Japan, the Nikkei 225 was up 0.03% to 36,236.47, while the Topix index was up 0.11% to 2,531.92. South Korea’s Kospi up 0.03% to 2,470.69. Australia S&P/ASX 200 is up 0.48% to, 7,555.40.

European shares drop at open, before ECB rate updates.

The DAX futures contract in Germany traded 0.43 lower, CAC 40 futures in France down 0.39% to 7,426.26 and the UK 100 futures contract in the U.K. down 0.20% to 7,512.75.

U.S. Equities advance was driven by favorable earnings and economic data; yields rose.

On Wednesday, MSCI’s global equity index reached its highest point in nearly two years, buoyed by upbeat earnings and economic indicators in Europe and the United States. Optimism about Chinese stimulus measures also contributed to the positive sentiment in global stock markets.

Indexes: Dow down 0.26%, S&P 500- up 0.08%, Nasdaq up 0.36%.

Corporate News:

Netflix, Inc. (NFLX) is up 0.00% at 544.87, Tesla, Inc. (TSLA) is flat by 0.00% at 207.83, and Apple Inc. (AAPL) is down 0.44% at 194.50. Goldman Sachs Group Inc (GS) is down 0.36% at 379.40, and Morgan Stanley (MS) is up 0.96% at 87.57.

Key Economic Events & Data Release Today:

(EUR) German Ifo Business Climate Index (Jan) Forecast 86.7, Previous 86.4 at 14:30.

(EUR) ECB Interest Rate Decision (Jan) Forecast 4.50%, Previous 4.50% at 18:45.

(ECB) ECB Monetary Policy Statement at 18:45.

(USD) Building Permits Forecast 1.495M, Previous 1.467M at 19:00.

(USD) Initial Jobless Claims Forecast 200K, Previous 187K at 19:00.

(USD) GDP (QoQ) (Q4) Forecast 2.0%, Previous 4.9% at 19:00.

(EUR) ECB President Lagarde Speaks at 21:30.