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Daily Index Analysis – Strong CPI Triggers NASDAQ 100 Decline.

Daily Index Analysis – Strong CPI Triggers NASDAQ 100 Decline.

11 Apr 2024

Introduction:

Global markets witnessed a mixed performance, resilient amidst notable US inflation data. In Asia, markets fluctuated, with the Hang Seng Index showing notable gains. Meanwhile, European markets faced declines due to the surpassing US inflation figures. Wall Street concluded with substantial losses, as hopes for early interest rate cuts were dashed by persistent inflation concerns.

Market In Focus for today – Nasdaq 100

Wednesday saw the release of CPI numbers stronger than expected, resulting in a decline in the NASDAQ 100.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18243.04 | Negative Crossover | Bearish
  • MA 20: 18285.85 | Negative Crossover | Bearish
  • MA 50: 18319.28 | Negative Crossover | Bearish

Simple:

  • MA 5: 18275.43 | Negative Crossover | Bearish
  • MA 20: 18281.22| Negative Crossover | Bearish
  • MA 50: 18415.55 | Negative Crossover | Bearish

RSI (Relative Strength Index): 41.41| Sell Zone| Bearish


Stochastic Oscillator: 40.43| Neutral Zone | Neutral

Resistance And Support Levels:

  • R1: 18380.63 | R2: 18701.54
  • S1: 18075.25| S2: 17281.63


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion: Sell Limit: 18246.06 | Take Profit: 17966.56| Stop Loss: 18447.92.

S&P 500:

The S&P 500 dropped 1.0% as hotter-than-expected inflation data added uncertainty to the interest rate outlook.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5225.66 | Negative Crossover | Bearish
  • MA 20: 5240.05 | Negative Crossover | Bearish
  • MA 50: 5244.09 | Negative Crossover | Bearish

Simple:

  • MA 5: 5236.38 | Negative Crossover | Bearish
  • MA 20: 5241.73| Negative Crossover | Bearish
  • MA 50: 5273.20 | Negative Crossover | Bearish

RSI (Relative Strength Index): 36.8| Sell Zone| Negative


Stochastic Oscillator: 22.81| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 5270.34 | R2: 5334.81
  • S1: 5148.77| S2: 5044.51


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 5209.09 | Take Profit: 5155.84| Stop Loss: 5245.16.

FTSE 100:

The FTSE 100 experiences a slip due to the downturn in financial stocks, while attention remains focused on the upcoming ECB meeting.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7967.74 | Negative Crossover | Bearish
  • MA 20: 7956.48 | Positive Crossover | Bullish
  • MA 50: 790692 | Positive Crossover | Bullish

Simple:

  • MA 5: 7970.00 | Negative Crossover | Bearish
  • MA 20: 7951.06| Positive Crossover | Bullish
  • MA 50: 7908.09 | Positive Crossover | Bullish

RSI (Relative Strength Index): 53.55| Bullish Zone| Positive


Stochastic Oscillator: 68.33| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 8038.5 | R2: 8106.2
  • S1: 7916.5| S2: 7808.1


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Buy Limit : 7976.0 | Take Profit: 8029.0| Stop Loss: 7948.9.

DAX 40:

Today, the focus of the DAX Index is on the ECB’s forward guidance and the release of US Producer Prices.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18190.17 | Negative Crossover | Bearish
  • MA 20: 18246.67 | Negative Crossover | Bearish
  • MA 50: 18212.14 | Negative Crossover | Bearish

Simple:

  • MA 5: 18222.02 | Negative Crossover | Bearish
  • MA 20: 18269.66 | Negative Crossover | Bearish
  • MA 50: 18280.60 | Negative Crossover | Bearish

RSI (Relative Strength Index): 37.97| Sell Zone| Negative


Stochastic Oscillator: 19.48| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 18298.1 | R2: 18639.3
  • S1: 17972.0 | S2: 17623.2


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Sell Limit : 18203.3 | Take Profit: 17920.2| Stop Loss: 18385.3.


Elsewhere in the Indices Market:

Asian markets display a mixed performance, showing resilience in the face of significant US inflation data.

The Shanghai composite is up at 0.23%. Overall, the Singapore MSCI down 0.17% to 292.52. Over in Hong Kong, the Hang Seng Index up 1.85% to 17,139.17. In Japan, the Nikkei 225 down 0.35% to 39,442.63, while the Topix index was up 0.15% to 2746.96. South Korea’s Kospi up 0.07% to 2,706.96. Australia S&P/ASX 200 down 0.44% to, 7,813.60.

On Thursday, European markets experienced declines as investors globally processed the latest US inflation figures, which surpassed expectations.

The DAX futures contract in Germany traded 0.55 lower, CAC 40 futures in France down 0.11% to 8,036.18 and the UK 100 futures contract in the U.K. down 0.23% to 7,943.11.

Wall Street concludes with significant losses as persistent inflation dampens hopes for interest rate cuts.

U.S. stocks fell sharply at the close on Wednesday following the release of inflation data that surpassed expectations, dashing hopes for an early interest rate cut by the Federal Reserve, possibly as soon as June.

Indexes: Dow down 1.09%, S&P 500- down 0.95%, Nasdaq up 0.84%.


Corporate News:

Netflix, Inc. (NFLX) up 0.06% at 618.58, Tesla, Inc (TSLA) down 2.89% at 171.76, Apple Inc. (AAPL) down 1.11% at 167.78. Goldman Sachs Group Inc (GS) down 2.42% at 400.76, Morgan Stanley (MS) down 2.58% at 91.65.



Key Economic Events & Data Release Today:

(CPI) CPI (MoM) (Mar) Forecast –0.5%, Previous 1.0% at 07:00.

(EUR) ECB Monetary Policy Statement at 17:45.

(EUR) ECB Interest Rate Decision (Apr) Forecast 4.50%, Previous 4.50% at 17:45.

(USD) PPI (MoM) (Mar) Forecast 0.3%, Previous 0.6% at 18:00.

(USD) Initial Jobless Claims Forecast 216K, Previous 221K at 18:00.

(ECB) ECB President Lagarde Speaks at 19:45.