. Daily Index Analysis - Wall Street soars, Dow hits 38K, S&P rises, FTSE falls.

Daily Index Analysis – Wall Street soars, Dow hits 38K, S&P rises, FTSE falls.

Daily Index Analysis – Wall Street soars, Dow hits 38K, S&P rises, FTSE falls.

23 Jan 2024

Introduction:

Asian markets respond to Wall Street’s record performance, with gains in Shanghai, Hang Seng, Kospi, and S&P/ASX 200. Meanwhile, European stocks see a modest rise ahead of the ECB meeting. In the U.S., the S&P 500 reaches another all-time high as technology stocks lead the way, while investors eagerly await upcoming corporate reports for insights into this year’s earnings outlook.

Market In Focus for today – DOW JONES

Tuesday morning saw minimal movement in U.S. stock futures following the historic milestone of the Dow Jones surpassing 38,000 for the first time. Dow futures dipped by 17 points, or 0.04% decrease.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38127.08 | Positive Crossover | Bullish
  • MA 20: 37767.23 | Positive Crossover | Bullish
  • MA 50: 37784.71 | Positive Crossover | Bullish

Simple:

  • MA 5: 38156.05 | Positive Crossover | Bullish
  • MA 20: 37767.22| Positive Crossover | Bullish
  • MA 50: 37784.34 | Positive Crossover | Bullish

RSI (Relative Strength Index): 66.98| Buy Zone| Bullish

Stochastic Oscillator: 98.95| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 38289.20 | R2: 38670.30
  • S1: 37990.50| S2: 37485.80

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 37805.10 | Take Profit: 38217.10| Stop Loss: 37557.90.

S&P 500:

On Monday, the S&P 500 achieved a new all-time high, marking another day of gains for the major indexes on Wall Street.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4876.33 | Positive Crossover | Bullish
  • MA 20: 4824.20 | Positive Crossover | Bullish
  • MA 50: 4796.86 | Positive Crossover | Bullish

Simple:

  • MA 5: 4881.52 | Positive Crossover | Bullish
  • MA 20: 4824.95| Positive Crossover | Bullish
  • MA 50: 4796.86| Positive Crossover | Bullish

RSI (Relative Strength Index): 71.98| Bullish Zone| Positive

Stochastic Oscillator: 92.98|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4895.90 | R2: 4963.40
  • S1: 4830.27| S2: 4723.40

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4815.27 | Take Profit: 4895.90| Stop Loss: 4760.90.

FTSE 100:

The FTSE 100, which experienced a six-week low at 7,403 last week due to reduced expectations of a rate cut, is struggling to recover lost ground. As of now, it has not succeeded in surpassing the 7,500 mark in daily chart closings.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7503.25 | Negative Crossover | Bearish
  • MA 20: 7518.65 | Negative Crossover | Bearish
  • MA 50: 7625.05 | Negative Crossover | Bearish

Simple:

  • MA 5: 7504.16 | Negative Crossover | Bearish
  • MA 20: 7518.73| Negative Crossover | Bearish
  • MA 50: 7625.16| Negative Crossover | Bearish

RSI (Relative Strength Index): 39.26| Selling Zone| Sell

Stochastic Oscillator: 93.01|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 7525.0 | R2: 7604.7
  • S1: 7479.4| S2: 7412.7

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Limit Sell: 7489.2 | Take Profit: 7417.6| Stop Loss: 7541.3.

EURO STOXX 50:

European markets shift downward, relinquishing the positivity observed at the beginning of the week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4493.78 | Negative Crossover | Bearish
  • MA 20: 4470.02 | Positive Crossover | Bullish
  • MA 50: 4489.00 | Negative Crossover | Bearish

Simple:

  • MA 5: 4497.04 | Negative Crossover | Bearish
  • MA 20: 4470.15| Positive Crossover | Bullish
  • MA 50: 4488.94| Negative Crossover | Bearish

RSI (Relative Strength Index): 51.96| Positive Zone| Bullish

Stochastic Oscillator: 91.27|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4530 | R2: 4635
  • S1: 4469| S2: 4382

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Limit Sell: 4519 | Take Profit: 4431| Stop Loss: 4593.

Elsewhere in the Indices Market:

Asian stock markets rise following the most recent record-setting performance on Wall Street.

The Shanghai composite is up at 0.53%. Overall, the Singapore MSCI is down 0.03% to 274.88. Over in Hong Kong, the Hang Seng Index up 2.63% to 15,353.98. In Japan, the Nikkei 225 down 0.08% to 36,517.57, while the Topix index was down 0.11% to 2,542.07. South Korea’s Kospi up 0.58% to 2,464.35. Australia S&P/ASX 200 is up 0.51% to, 7,514.90.

European stocks show a slight increase as investors anticipate the upcoming ECB meeting.

The DAX futures contract in Germany traded 0.15 lower, CAC 40 futures in France down 0.21% to 7,397.53 and the UK 100 futures contract in the U.K. up 0.03% to 7,490.16.

On Monday, the U.S. index climbed higher as technology stocks contributed to recent advancements.

As tech stocks continued to rise and investors looked to upcoming corporate reports for guidance on this year’s earnings expectations, the S&P 500 closed at a record high for the second time in a row on Monday.

Indexes: Dow up 0.04%, S&P 500- up 0.02%, Nasdaq up 0.03%.

Corporate News:

Netflix, Inc. (NFLX) is up 0.57% at 485.71, Tesla, Inc. (TSLA) is down 1.60% at 208.80, and Apple Inc. (AAPL) is up 1.22% at 193.89. Goldman Sachs Group Inc (GS) is up 0.98% at 385.96, and Morgan Stanley (MS) is up 0.46% at 85.73.

Key Economic Events & Data Release Today:

(JPY) BoJ Interest Rate Decision Forecast –0.10%, Previous –0.10% at 08:00.

(JPY) BoJ Outlook Report (YoY) at 08:30.

(JPY) BoJ Press Conference at 12:00

(CAD) New Housing Price Index (MoM) (Dec) Forecast 0.0%, Previous –0.2% at 19:00.