. Daily Index Analysis - Tech, tensions, and banks unsettle global markets.

Daily Index Analysis – Tech, tensions, and banks unsettle global markets.

Daily Index Analysis – Tech, tensions, and banks unsettle global markets.

29 Jan 2024

Introduction:

In the global indices landscape, Asian stocks climb with China’s stimulus efforts easing Evergrande concerns. Meanwhile, European markets display a mixed performance amid caution in anticipation of a week filled with significant events. In the U.S., stock futures dip ahead of major tech earnings and the Federal Reserve’s crucial meeting decision, adding uncertainty to Monday’s market outlook.

Market In Focus for today – Dow Jones

Dow Jones futures decline as Microsoft takes the lead in a substantial wave of tech earnings.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38210.94 | Positive Crossover | Bullish
  • MA 20: 38142.35 | Positive Crossover | Bullish
  • MA 50: 37877.36 | Positive Crossover | Bullish

Simple:

  • MA 5: 38229.06 | Negative Crossover | Bearish
  • MA 20: 38142.17| Positive Crossover | Bullish
  • MA 50: 37877.07 | Positive Crossover | Bullish

RSI (Relative Strength Index): 60.86| Buy Zone| Bullish

Stochastic Oscillator: 49.87| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 38383.17 | R2: 38681.85
  • S1: 37967.14| S2: 37572.46

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 38041.82 | Take Profit: 38383.17| Stop Loss: 37828.47.

S&P 500:

Stock futures declined in anticipation of significant tech company earnings and the Federal Reserve’s decision during the meeting, S&P 500 little changed.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4913.57 | Positive Crossover | Bullish
  • MA 20: 4895.89 | Positive Crossover | Bullish
  • MA 50: 4833.70 | Positive Crossover | Bullish

Simple:

  • MA 5: 4914.90 | Positive Crossover | Bullish
  • MA 20: 4895.85| Positive Crossover | Bullish
  • MA 50: 4833.68| Positive Crossover | Bullish

RSI (Relative Strength Index): 64.10| Bullish Zone| Positive

Stochastic Oscillator: 0.75|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4930.97 | R2: 5009.35
  • S1: 4844.20| S2: 4723.83

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4841.40 | Take Profit: 4930.97| Stop Loss: 4793.81.

FTSE 100:

The UK’s leading stock index remained close to a two-week peak on Monday, buoyed by increased tensions in the Middle East, resulting in a rise in energy stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7639.34 | Positive Crossover | Bullish
  • MA 20: 7549.19 | Positive Crossover | Bullish
  • MA 50: 7591.12 | Positive Crossover | Bullish

Simple:

  • MA 5: 7643.00 | Positive Crossover | Bullish
  • MA 20: 7549.24| Positive Crossover | Bullish
  • MA 50: 7591.66| Positive Crossover | Bullish

RSI (Relative Strength Index): 69.58| Buying Zone| Buy

Stochastic Oscillator: 92.14|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 7688.8 | R2: 7780.8
  • S1: 7604.2| S2: 7515.9

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 7657.5 | Take Profit: 7755.0| Stop Loss: 7604.2.

Euro Stoxx 50:

European stock markets commenced the week steadily, with a packed schedule featuring significant earnings reports and central bank rate decisions.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4636.95 | Positive Crossover | Bullish
  • MA 20: 4554.00 | Positive Crossover | Bullish
  • MA 50: 4509.39 | Positive Crossover | Bullish

Simple:

  • MA 5: 4641.00| Positive Crossover | Bullish
  • MA 20: 4554.09| Positive Crossover | Bullish
  • MA 50: 4509.32| Positive Crossover | Bullish

RSI (Relative Strength Index): 71.94| Positive Zone| Bullish

Stochastic Oscillator: 91.01|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4660 | R2: 4726
  • S1: 4619| S2: 4531

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 4574 | Take Profit: 4660| Stop Loss: 4520

Elsewhere in the Indices Market:

Asian stocks rise as China stimulus softens Evergrande blow.

The Shanghai composite is up at 0.14%. Overall, the Singapore MSCI is down 0.46% to 277.23. Over in Hong Kong, the Hang Seng Index up 0.78% to 16,077.24. In Japan, the Nikkei 225 was up 0.77% to 36,026.94, while the Topix index was up 1.27% to 2529.48. South Korea’s Kospi up 0.89% to 2,500.65. Australia S&P/ASX 200 is up 0.030% to, 7,578.40.

European stocks show a mix of results as caution prevails at the beginning of a week filled with significant events.

The DAX futures contract in Germany traded 0.44 lower, CAC 40 futures in France up 0.08% to 7,639.88 and the UK 100 futures contract in the U.K. up 0.22% to 7,652.18.

Stock futures decline in anticipation of major tech company earnings and the Federal Reserve’s meeting decision.

Monday morning saw a mix in U.S. stock futures as investors awaited earnings reports from large-cap tech companies and the Federal Reserve’s decision on interest rates.

Indexes: Dow down 0.2%, S&P 500- down 0.15%, Nasdaq down 0.55%.

Corporate News:

Netflix, Inc. (NFLX) is up 1.50% at 570.42, Tesla, Inc. (TSLA) is up 0.34% at 183.25, Apple Inc. (AAPL) down 0.90% at 192.42. Goldman Sachs Group Inc (GS) is down 1.28% at 377.79, and Morgan Stanley (MS) is down 0.33% at 87.73.

Key Economic Events & Data Release Today:

(EUR) ECB’s De Guindos Speaks at 08:10.

(AUD) Retail Sales (MoM) (Dec) Forecast –0.7%, Previous 2.0% at 19:30.