. Daily Index Analysis - S&P dips, FTSE soars, Tech chaos, FOMC sparks.

Daily Index Analysis – S&P dips, FTSE soars, Tech chaos, FOMC sparks.

Daily Index Analysis – S&P dips, FTSE soars, Tech chaos, FOMC sparks.

04 Jan 2024

Introduction:

In global indices, most Asian stocks continue their descent, extending losses from the year’s weak start. Meanwhile, European shares rebounded from a three-week low, led by gains in energy and healthcare. Wall Street marks a second consecutive lower close in 2024 amid persistent profit-taking, with the Federal Reserve’s December meeting minutes failing to lift market sentiment.

Market In Focus for today – S&P 500

U.S. stock indexes declined as investors took profits following a robust 2023 while anticipating the Federal Reserve’s December meeting minutes for potential insights into its future interest rate decisions, S&P slips 0.46%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4760.25 | Negative Crossover | Bearish
  • MA 20: 4805.17 | Negative Crossover | Bearish
  • MA 50: 4768.87 | Negative Crossover | Bearish

Simple:

  • MA 5: 4759.59 | Negative Crossover | Bearish
  • MA 20: 4805.18| Negative Crossover | Bearish
  • MA 50: 4768.87 | Negative Crossover | Bearish

RSI (Relative Strength Index): 32.64| Sell Zone| Bearish

Stochastic Oscillator: 1.03|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 4838.29 | R2: 4932.47
  • S1: 4741.63| S2: 4605.32

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 4709.41 | Take Profit: 4605.32| Stop Loss: 4793.68.

FTSE 100:

European stock markets rose Thursday, rebounding after recent losses as investors digested regional inflation data and the outlook for central bank rate cuts. FTSE 100 in the U.K. rose 0.4%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7707.52 | Positive Crossover | Bullish
  • MA 20: 7729.33 | Negative Crossover | Bearish
  • MA 50: 7656.85 | Positive Crossover | Bullish

Simple:

  • MA 5: 7702.92 | Positive Crossover | Bullish
  • MA 20: 7729.27| Negative Crossover | Bearish
  • MA 50: 7656.82| Positive Crossover | Bullish

RSI (Relative Strength Index): 50.34| Buy Zone| Bullish

Stochastic Oscillator: 16.57|Sell Zone | Positive

Resistance And Support Levels:

  • R1: 7707.4 | R2: 7789.8
  • S1: 7617.0| S2: 7528.5

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 7679.3 | Take Profit: 7789.8| Stop Loss: 7612.9.

Elsewhere in the Indices Market:

Most Asian stocks declined on Thursday, continuing their downward trend following a weak beginning to the year.

The Shanghai composite is down at 0.43%. Overall, the Singapore MSCI is down 0.60% to 279.45. Over in Hong Kong, the Hang Seng Index is down 0.00% to 16,645.98. In Japan, the Nikkei 225 was down 0.53% to 33,288.29, while the Topix index was up 0.52% to 2,378.79. South Korea’s Kospi down 0.78% to 2,587.02. Australia S&P/ASX 200 is down 0.39% to, 7,494.10.

European shares recovered from their lowest point in three weeks, propelled by gains in the energy and healthcare sectors.

The DAX futures contract in Germany traded 0.34 higher, CAC 40 futures in France up 0.37% to 7,439.32 and the UK 100 futures contract in the U.K. up 0.15% to 7,693.72.

Wall Street records its second consecutive lower close as 2024 begins with profit-taking.

U.S. stock indexes concluded the second session of the new year with another decline, as extended profit-taking persisted on Wednesday. Despite a robust finish to 2023, the minutes from the Federal Reserve’s December meeting were unable to dispel the prevailing market pessimism.

Indexes: Dow down 0.76%, S&P 500- down 0.8%, Nasdaq down 1.18%.

Corporate News:

Netflix, Inc. (NFLX) is up 0.38% at 470.26, Tesla, Inc. (TSLA) is down 4.01% at 238.45, and Apple Inc. (AAPL) is down 0.75% at 184.25. Goldman Sachs Group Inc (GS) is down 1.68% at 381.79, and Morgan Stanley (MS) is down 2.12% at 91.91.

Key Economic Events & Data Release Today:

(USD) FOMC Meeting Minutes at 00:30.

(EUR) German CPI (MoM) (Dec) Forecast 0.1%, Previous –0.4% at 18:30.

(USD) ADP Nonfarm Employment Change (Dec) Forecast 115K, Previous 103K at 18:45.

(USD) Initial Jobless Claims Forecast 216K, Previous 218K at 19:00.

(USD) Crude Oil Inventories Forecast –3.200M, Previous –7.114M at 21:30.