. Daily index Analysis -S&P 500 Hits 4-Month Low, Unprecedented Decline Analysis

Daily index Analysis -S&P 500 Hits 4-Month Low, Unprecedented Decline Analysis

Daily index Analysis -S&P 500 Hits 4-Month Low, Unprecedented Decline Analysis

04 Oct 2023

Introduction:

In the world of indices, Asian shares tumble in response to Wall Street’s rate-driven decline, with notable drops in Japan’s Nikkei 225 and South Korea’s Kospi. Meanwhile, European stocks face downward pressure amidst a persistent bond market sell-off, while in the U.S., concerns over rising interest rates intensify after robust job opening data for August.

Market In Focus for today – S&P 500

The S&P 500 index closed at its lowest level since June 1 on Tuesday as economic data underscored the view the Federal Reserve may need to keep interest rates high.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4277.63 | Negative Crossover | Bearish
  • MA 20: 4321.80 | Negative Crossover | Bearish
  • MA 50: 4375.88 | Negative Crossover | Bearish

Simple:

  • MA 5: 4279.32 | Negative Crossover | Bearish
  • MA 20: 4319.80| Negative Crossover | Bearish
  • MA 50: 4401.07 | Negative Crossover | Bearish

RSI (Relative Strength Index): 35.17 | Sell Zone | Bearish

Stochastic Oscillator: 16.17 | Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4341.60 | R2: 4429.59
  • S1: 4261.26 | S2: 4171.35

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell : 4232.56 | Take Profit: 4171.35 | Stop Loss: 4274.65.


Elsewhere in the Indices Market

Asian shares are sharply lower, tracking a rate-driven tumble on Wall Street.

The Shanghai composite is up at 0.10%. Overall, the Singapore MSCI up 0.59% to 282.95. Over in Hong Kong, the Hang Seng Index down by 0.78% to 17,195.84. In Japan, the Nikkei 225 down 2.28% to 30,526.88, while the Topix index was down 2.49% to 2,218.89. South Korea’s Kospi down 2.41% to 2,405.69. Australia S&P/ASX 200 down 0.77% to, 6,890.20.

European stocks edge down as bond rout continues.

The DAX futures contract in Germany traded 0.25 higher, CAC 40 futures in France up 0.47% to 7,029.70 and the UK 100 futures contract in the U.K. up 0.09% to 7,476.66.

US indexes ended sharply lower as data adds to rate worries.

Following the release of the August Job Opening and Labor Turnover (JOLT) data, the US stock market indices increased their losses. In August, there were 9.6 million job opportunities, up from a revised total of 8.9 million in July, according to the data. This suggests that, despite the Federal Reserve’s efforts to slow the economy, there are healthy labour markets.

Indexes: Dow down 1.3%, S&P 500- down 1.4%, Nasdaq down 1.9%.

Corporate News:

Walt Disney Co (DIS) down 2.61% at 79.54, Walmart Inc. (WMT) down at 0.63% at 159.09, Amazon.com, Inc. (AMZN) down at 3.66% at 124.72. JPMorgan Chase & Co (JPM) down 0.74% at 142.71, Morgan Stanley (MS) down 2.97% at 78.02.

Key Economic Events & Data Release Today:

(NZD) RBNZ Interest Rate Decision Actual 5.50%, Forecast 5.50%, Previous 5.50% at 06:30.

(EUR) ECB President Lagarde Speaks at 13:30.

(USD) ADP Nonfarm Employment Change (Sep) Forecast 153K, Previous 177K at 17:45.

(USD) ISM Non-Manufacturing PMI (Sep) Forecast 53.6, Previous 54.5 at 19:30.

(USD) Crude Oil Inventories Forecast –0.446M, Previous –2.170M at 20:00.