. Weekly Index Analysis - Asia sinks, Europe slumps, Dow wavers. S&P stumbles, FTSE rebels.

Weekly Index Analysis – Asia sinks, Europe slumps, Dow wavers. S&P stumbles, FTSE rebels.

Weekly Index Analysis – Asia sinks, Europe slumps, Dow wavers. S&P stumbles, FTSE rebels.

06 Jan 2024

Introduction:

In the global indices market, Asian stocks witness a significant decline amid China’s services sector gaining momentum. Meanwhile, European shares log their first weekly loss in eight weeks, setting a challenging tone for the new year. On Wall Street, a modest Friday win occurs, but it marks the first weekly decline in ten weeks, with the S&P 500 and Nasdaq Composite facing their worst weekly performance in months.

Market In Focus for the Next Week – Dow Jones

U.S. stock indexes navigated a volatile session on Friday, ultimately concluding with marginal gains. The Dow Jones Industrial Average (.DJI) inched up 25.77 points, or 0.07%, closing at 37,466.11.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37757.53 | Negative Crossover | Bearish
  • MA 20: 37613.00 | Positive Crossover | Bullish
  • MA 50: 36021.98 | Positive Crossover | Bullish

Simple:

  • MA 5: 37773.05 | Negative Crossover | Bearish
  • MA 20: 37613.00| Positive Crossover | Bullish
  • MA 50: 36021.98 | Positive Crossover | Bullish

RSI (Relative Strength Index): 65.61| Buy Zone| Bullish

Stochastic Oscillator: 0.84|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 38110.50 | R2: 38755.61
  • S1: 37258.03| S2: 36359.09

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit : 37234.99 | Take Profit: 38110.50| Stop Loss: 36751.16.

S&P 500:

On Friday, the S&P 500 closed with a slight increase, but the stronger-than-expected jobs report led to the end of a nine-week winning streak for all three major averages.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4749.01 | Negative Crossover | Bearish
  • MA 20: 4763.88 | Negative Crossover | Bearish
  • MA 50: 4593.34 | Positive Crossover | Bullish

Simple:

  • MA 5: 4747.87 | Negative Crossover | Bearish
  • MA 20: 4763.88| Negative Crossover | Bearish
  • MA 50: 4593.34 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.07| Buy Zone| Bullish

Stochastic Oscillator: 1.11|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4746.39 | R2: 4844.40
  • S1: 4619.35| S2: 4477.78

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit : 4633.87 | Take Profit: 4811.73| Stop Loss: 4506.82.

FTSE 100:

Despite a rise in UK house prices for the first time in eight months, the FTSE 100 persists in experiencing a sell-off, influenced by scaled-back expectations for a rate cut.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7705.34 | Negative Crossover | Bearish
  • MA 20: 7651.59 | Positive Crossover | Bullish
  • MA 50: 7519.84 | Positive Crossover | Bullish

Simple:

  • MA 5: 7716.06 | Negative Crossover | Bearish
  • MA 20: 7651.59| Positive Crossover | Bullish
  • MA 50: 7519.84 | Positive Crossover | Bullish

RSI (Relative Strength Index): 56.39| Buy Zone| Bullish

Stochastic Oscillator: 28.83|SellZone | Negative

Resistance And Support Levels:

  • R1: 7713.3 | R2: 7905.1
  • S1: 7581.7| S2: 7442.6

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy : 7735.9 | Take Profit: 7905.1| Stop Loss: 7638.1.

DAX 40:

The downturn in Germany’s DAX Index mirrors the repercussions of unsatisfactory retail figures. This decline in the indices highlights increasing investor concerns regarding the economic outlook in the Eurozone.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16764.52 | Negative Crossover | Bearish
  • MA 20: 16841.62 | Negative Crossover | Bearish
  • MA 50: 16148.09 | Positive Crossover | Bullish

Simple:

  • MA 5: 16782.06 | Negative Crossover | Bearish
  • MA 20: 16841.65| Negative Crossover | Bearish
  • MA 50: 16148.34 | Positive Crossover | Bullish

RSI (Relative Strength Index): 55.52| Buy Zone| Bullish

Stochastic Oscillator: 5.14|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 16825.1 | R2: 17190.1
  • S1: 16566.9| S2: 16095.0

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit : 16584.7 | Take Profit: 16985.3| Stop Loss: 16335.4.

Elsewhere in the Indices Market

Most Asian stocks experience a notable decline, while China’s services sector shows signs of gaining momentum.

The Shanghai composite is down at 0.85%. Overall, the Singapore MSCI up 0.02% to 279.40. Over in Hong Kong, the Hang Seng Index down by 0.66% to 16,535.33. In Japan, the Nikkei 225 up 0.27% to 33,377.42, while the Topix index was up 0.62% to 2,393.54. South Korea’s Kospi down 0.35% to 2,469.63. Australia S&P/ASX 200 down 0.07% to, 7,489.10.

European shares record their initial weekly decline in eight weeks, signalling a challenging beginning to the year.

The DAX futures contract in Germany traded 0.14% lower, CAC 40 futures in France down 0.40% to 7,420.69 and the UK 100 futures contract in the U.K. down 0.43% to 7,689.61.

Wall Street registers a modest Friday win but marks its initial weekly drop in ten weeks.

U.S. stock indexes endured a topsy-turvy session on Friday but ultimately closed marginally higher, although the small gains did not stop the S&P 500 and Nasdaq Composite from starting 2024 with their worst weekly showing in months.

Indexes: Dow down 0.59%, S&P down 1.54%, Nasdaq down 3.26%.

Corporate News:

Tesla (TSLA) down 0.18% at 237.49, Apple (AAPL) down at 0.40% at 181.18, Morgan Stanley (MS) up at 1.18% at 93.24. JPMorgan Chase & Co (JPM) up 0.50% at 172.27, Goldman Sachs Group Inc, (GS) up 0.91% at 386.44.

Key Economic Events & Data Release for Upcoming Week:

(AUD) Retail Sales (MoM) (Nov) (Tuesday)

(USD) Crude Oil Inventories (Wednesday)

(USD) CPI (MoM) (Dec) (Thursday)

(USD) CPI (YoY) (Dec) (Thursday)

(USD) Core CPI (MoM) (Dec) (Thursday)

(USD) Initial Jobless Claims (Thursday)

(CNY) CPI (YoY) (Dec) (Friday)