. Daily Index Analysis - S&P 500 Shatters Records Amidst Weak Employment Data

Daily Index Analysis – S&P 500 Shatters Records Amidst Weak Employment Data

Daily Index Analysis – S&P 500 Shatters Records Amidst Weak Employment Data

06 Nov 2023

Introduction:

In the global indices market, Asian stocks are on the rise, benefiting from a positive influence from the recent U.S. rally. Meanwhile, European shares appear relatively subdued after a strong week. In the U.S., Wall Street ended higher as Treasury yields fell due to disappointing employment data, sparking hopes of a Federal Reserve decision to halt its interest rate hike campaign.

Market In Focus for today – S&P 500

U.S. stock markets end the day with gains as Treasury bond yields decline in response to weak employment data. The S&P 500 gained 40.56 points, or 0.94%, to 4,358.34.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4361.34 | Positive Crossover | Bullish
  • MA 20: 4287.99 | Positive Crossover | Bullish
  • MA 50: 4284.80 | Positive Crossover | Bullish

Simple:

  • MA 5: 4365.34 | Positive Crossover | Bullish
  • MA 20: 4247.55| Positive Crossover | Bullish
  • MA 50: 4282.51 | Positive Crossover | Bullish

RSI (Relative Strength Index): 73.13| Buy Zone| Positive

Stochastic Oscillator: 99.83 | Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4389.75 | R2: 4511.12
  • S1: 4305.86| S2: 4234.47

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 4421.87 | Take Profit: 4511.12| Stop Loss: 4368.33.

Elsewhere in the Indices Market

Asian stocks gain on bullish tailwind from US rally.

The Shanghai composite is up at 0.91%. Overall, the Singapore MSCI up 0.35% to 282.48. Over in Hong Kong, the Hang Seng Index up 1.71% to 17,966.59. In Japan, the Nikkei 225 up 2.37% to 32,708.48, while the Topix index was up 1.64% to 2,360.46. South Korea’s Kospi up 5.66% to 2,502.37. Australia S&P/ASX 200 up 0.28% to, 6,997.40.

European shares muted after strong week.

The DAX futures contract in Germany traded 0.16 lower, CAC 40 futures in France down 0.20% to 7,033.70 and the UK 100 futures contract in the U.K. down 0.01% to 7,417.10.

Wall St close higher as Treasury yields fall after weak jobs data.

The primary stock indices on Wall Street surged on Friday as bond yields dropped significantly following reports indicating a slowdown in U.S. job growth and a slight increase in unemployment. This fuelled optimism that the Federal Reserve might conclude its interest rate increase efforts.

Indexes: Dow up 0.66%, S&P 500- up 0.94%, Nasdaq up 1.38%.

Corporate News:

Amazon.com, Inc. (AMZN) up 0.38% at 138.60, Walt Disney Co (DIS) up 2.14% at 85.07, Apple Inc. (AAPL) down 0.52% at 176.65. Goldman Sachs Group Inc (GS) up 4.42% at 327.62, Morgan Stanley (MS) up 3.81% at 76.26.

Key Economic Events & Data Release Today:

(JPY) Monetary Policy Meeting Minutes at 05:20.

(GBP) Construction PMI (Oct) Forecast 46.0, Previous 45.0 at 15:00.

(CAD) Ivey PMI (Oct) Previous 53.1 at 20:30.

(GBP) BoE MPC Member Pill Speaks at 22:30.