Index Analysis Report With Charting Trends – 07 September 2023
07 Sep 2023
Asian stocks fall amid economic gloom, tech hit by U.S.-China woes.
The Shanghai composite is down at 0.82%. Overall, the Singapore MSCI is down 0.25% to 281.73. Over in Hong Kong, the Hang Seng Index is down by 1.16% to 18,236.56. In Japan, the Nikkei 225 was up 0.69% to 33,010.53, while the Topix index was down 0.84% to 2,541.70. South Korea’s Kospi down 0.73% to 2,541.75. Australia S&P/ASX 200 is down 1.17% to, 7,172.00.
European Stocks Continue Declining for Sixth Straight Session Due to Global Slowdown.
The DAX futures contract in Germany traded 0.19% lower, CAC 40 futures in France down 0.84% to 7,194.09, and the UK 100 futures contract in the U.K. down 0.16% to 7,426.14.
Wall Street falls as economic data fuels concerns about inflation and interest rates.
Wall Street’s three major averages closed lower on Wednesday with the Nasdaq losing 1% of its value as stronger-than-expected services sector data fuelled worries that stubbornly sticky inflation would lead to longer-lasting increases in interest rates.
Indexes down: Dow 0.57%, S&P 500 0.70%, Nasdaq 1.06%.
Corporate News: Salesforce.com (CRM) is up 1.34% at 221.61, Apple (AAPL) is down 3.58% at 182.90, and J&J (JJ) is down at 1.67% at 158.00. JPMorgan Chase & Co (JPM) is down 0.17% at 144.96, and Goldman Sachs Group Inc, (GS) is down 0.81% at 321.13.
S&P 500 TECHNICAL OVERVIEW:
Exponential Moving Average
- EMA 5: The 5-day EMA stands at 4474.78, indicating a Sell signal.
- EMA 20: The 20-day EMA is at 4490.39, signalling a Sell sentiment.
- EMA 50: The 50-day EMA currently sits at 4482.12, suggesting a Sell indication.
Simple Moving Average
- SMA 5: The 5-day SMA shows a value of 4476.67, reinforcing the Sell recommendation.
- SMA 20: With a value of 4509.67, the 20-day SMA also supports a Sell sentiment.
- SMA 50: The 50-day SMA registers at 4455.69 affirming a Buy indication.
RSI (Relative Strength Index)
The RSI, calculated over a 14-day period, stands at 40.53 signifying a Neutralsignal.
The %K value of the Stochastic Oscillator suggests a Negative stance.
Resistance And Support Levels
- Resistance: The resistance level is observed at 4496.69
- Support: The support level is identified at 4454.82
Summary And Trade Suggestions
In summary, the technical analysis of the S&P 500 points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favorable for traders to enter a short position.
- Entry Point: 4434.88
- Take Profit: 4373.07
- Stop Loss: 4482.73