. Daily Index Analysis - S&P 500 plunges post Fed surprise, Investors seek answers.

Daily Index Analysis – S&P 500 plunges post Fed surprise, Investors seek answers.

Daily Index Analysis – S&P 500 plunges post Fed surprise, Investors seek answers.

22 Nov 2023

Introduction:

In the global indices market, Asian shares declined following Wall Street’s weak close. Key indices such as the Shanghai Composite, Hang Seng, and Australia’s S&P/ASX 200 show varied movements. European shares remain subdued, influenced by financial sector fluctuations. Wall Street also experienced a downturn after recent gains, with S&P 500 and Nasdaq breaking their winning streaks.

Market In Focus for today – S&P 500

Indices remained in negative territory following the release of minutes from the recent Federal Reserve meeting S&P 500 closed down, ending a 5-session winning streak. The S&P 500 (.SPX) dropped to 4,538.19, a loss of 9.19 points, or 0.20%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4546.91 | Positive Crossover | Bullish
  • MA 20: 4514.33 | Positive Crossover | Bullish
  • MA 50: 4443.35 | Positive Crossover | Bullish

Simple:

  • MA 5: 4550.70 | Negative Crossover | Bearish
  • MA 20: 4524.92| Positive Crossover | Bullish
  • MA 50: 4415.38 | Positive Crossover | Bullish

RSI (Relative Strength Index): 69.85| Buy Zone| Bullish

Stochastic Oscillator: 0.93 | Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4553.02 | R2: 4634.27
  • S1: 4498.26| S2: 4431.14

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 4568.91 | Take Profit: 4634.27| Stop Loss: 4530.05.

Elsewhere in the Indices Market

Asian shares slip following a weak close on Wall Street.

The Shanghai composite is down at 0.56%. Overall, the Singapore MSCI up 0.86% to 274.43. Over in Hong Kong, the Hang Seng Index down 0.43% to 17,657.25. In Japan, the Nikkei 225 up 0.29% to 33,451.83, while the Topix index was up 0.44% to 2,378.19. South Korea’s Kospi up 0.07% to 2,512.28. Australia S&P/ASX 200 down 0.068% to, 7,073.40.

European shares muted as financial offset gains in miners; Fed minutes on tap.

The DAX futures contract in Germany traded 0.01 lower, CAC 40 futures in France down 0.24% to 7,229.45 and the UK 100 futures contract in the U.K. down 0.19% to 7,481.99.

Wall Street ends down after recent gains.

On Tuesday, U.S. stocks experienced a retreat, breaking the five-session winning streaks of the S&P 500 and Nasdaq. The decline was attributed to weakening retail performance following disappointing outlooks, coupled with a decrease in technology shares.

Indexes: Dow down 0.02%, S&P 500- down 0.02%, Nasdaq down 0.06%.

Corporate News:

Netflix, Inc. (NFLX) up 0.10% at 474.95, Tesla, Inc (TSLA) up 2.38% at 241.20, Apple Inc. (AAPL) down 0.42% at 190.64. Goldman Sachs Group Inc (GS) down 1.32% at 334.97, Morgan Stanley (MS) down 1.54% at 78.47.

Key Economic Events & Data Release Today:

(USD) FOMC Meeting Minutes at 00:30.

(USD) Initial Jobless Claims Forecast 225K, Previous 231K at 19:00.

(CAD) Manufacturing Sales (MoM) Previous 0.4% at 19:00.

(USD) Core Durable Goods Order (MoM) (Oct) Forecast 0.1%, Previous 0.5% at 19:00.

(USD) Crude Oil Inventories Forecast 0.900M, Previous 3.592M at 21:00.