. Daily Index Analysis - S&P 500 Notches 2-Year Winning Streak

Daily Index Analysis – S&P 500 Notches 2,Year Winning Streak

Daily Index Analysis – S&P 500 Notches 2,Year Winning Streak

08 Nov 2023

Introduction:

In the global indices market, Asian stocks are subdued as concerns over rate hikes resurface, affecting markets like Shanghai, Singapore, Hong Kong, Japan, and more. Meanwhile, European shares are relatively calm, with energy gains offset by financial losses. On Wall Street, U.S. stocks rose, driven by a retreat in Treasury yields, supporting mega-cap growth stocks and capturing their longest winning streak in two years. Investors are closely monitoring the Federal Reserve’s stance on interest rates.

Market In Focus for today – S&P 500

S&P 500 scored the longest win streak in 2 years on rates view. The S&P 500 scored its seventh straight day in the green.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4387.85 | Positive Crossover | Bullish
  • MA 20: 4332.82 | Positive Crossover | Bullish
  • MA 50: 4306.52 | Positive Crossover | Bullish

Simple:

  • MA 5: 4387.38 | Positive Crossover | Bullish
  • MA 20: 4313.95| Positive Crossover | Bullish
  • MA 50: 4283.20 | Positive Crossover | Bullish

RSI (Relative Strength Index): 72.08| Buy Zone| Bullish

Stochastic Oscillator: 95.31 | Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4402.87 | R2: 4512.39
  • S1: 4339.28| S2: 4252.73

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 4422.30 | Take Profit: 4512.39| Stop Loss: 4365.78.

Elsewhere in the Indices Market

Asian stocks muted as rate hike fears reemerge.

The Shanghai composite is down at 0.16%. Overall, the Singapore MSCI down 1.47% to 277.27. Over in Hong Kong, the Hang Seng Index down 0.58% to 17,568.46. In Japan, the Nikkei 225 down 0.33% to 32,166.48, while the Topix index was down 1.16% to 2,305.95. South Korea’s Kospi down 0.91% to 2,421.62. Australia S&P/ASX 200 up 0.26% to, 6,995.40.

European shares subdued as energy counters gains in financials.

The DAX futures contract in Germany traded 0.34 lower, CAC 40 futures in France down 0.21% to 6,971.89 and the UK 100 futures contract in the U.K. down 0.04% to 7,407.15.

Wall St rose as a retreat in US Treasury yields buoyed mega cap growth stocks.

On Tuesday, U.S. stock markets experienced an upswing, marked by the S&P 500 and Nasdaq achieving their lengthiest run of gains in a two-year period. This was attributed to a decrease in U.S. Treasury yields, which boosted the performance of large-cap growth stocks. Investors were also keen to gain a better understanding of the Federal Reserve’s stance on interest rates.

Indexes: Dow up 0.17%, S&P 500- up 0.28%, Nasdaq up 0.90%.

Corporate News:

Amazon.com, Inc. (AMZN) up 2.13% at 142.71, Walt Disney Co (DIS) up 0.68% at 84.59, Apple Inc. (AAPL) up 1.45% at 181.82. Goldman Sachs Group Inc (GS) up 0.12% at 323.95, Morgan Stanley (MS) down 0.54% at 75.51.

Key Economic Events & Data Release Today:

(AUD) Building Approvals (MoM) Actual –4.6%, Forecast –4.6%, Previous 7.2% at 06:00.

(EUR) German CPI (MoM) (Oct) Actual 0.0%, Forecast 0.0%, Previous 0.3% at 12:30.

(GBP) BoE Gov Bailey Speaks at 15:00

(EUR) Retail Sales (MoM) (Sep) Forecast –0.2%, Previous –1.2% at 15:30.

(USD) Fed Chair Powell Speaks at 19:45.