Weekly Index Analysis – Dow Jones Falls 0.83%, Erasing Thursday’s Gains
16 Sep 2023
In the ever-moving landscape of global indices, recent market activity tells a diverse story across different regions. In Asia, stock markets are on an upward trajectory, buoyed by China’s ongoing economic recovery. Meanwhile, European shares are posting weekly gains, driven by optimism regarding China and hopes for a potential pause in the European Central Bank’s actions. On the other side of the globe, Wall Street faced a notable dip, marked by concerns over chipmakers and the performance of mega-cap growth companies, compounded by rising Treasury yields. Let’s explore these intriguing developments across the indices market.
Market In Focus for the Next Week – Dow Jones
The Dow Jones Industrial Average dropped 288.87 points, or 0.83%, to 34,618.24. The index entirely erased Thursday’s 332-point recovery when it was at its lowest point.
The Dow ended a positive week up 0.12%.
- MA 5: 34850.40 | Positive Crossover | Bullish
- MA 20: 34768.76 | Positive Crossover | Bullish
- MA 50: 34749.58 | Positive Crossover | Bullish
- MA 5: 34822.1 | Positive Crossover | Bullish
- MA 20: 34680.37| Positive Crossover | Bullish
- MA 50: 35009.59 | Negative Crossover | Bearish
RSI (Relative Strength Index): 54.61 | Buy Zone | Positive
Stochastic Oscillator: 95.38 | Buy Zone | Positive
Resistance And Support Levels:
- R1: 35025.43 | R2: 35732.41
- S1: 34610.45 | S2: 34041.79
Overall Sentiment: Bullish | Market Direction: Buy
Trade Suggestion: Stop Buy: 35194.49 | Take Profit: 35732.41 | Stop Loss: 34871.73.
Elsewhere in the Indices Market.
Asia’s stock markets climb as China’s economy shows further recovery.
The Shanghai composite is down at 0.26%. Overall, the Singapore MSCI up 0.68% to 288.20. Over in Hong Kong, the Hang Seng Index up by 0.75% to 18,182.89. In Japan, the Nikkei 225 was up 1.10% to 33,533.09, while the Topix index was up 0.95% to 2,428.38. South Korea’s Kospi up 1.10% to 2,601.28. Australia S&P/ASX 200 is up 1.29% to, 7,279.00.
European shares post weekly gains on China optimism and hope for a pause at the ECB.
The DAX futures contract in Germany traded 0.56% higher, CAC 40 futures in France up 0.96% to 7,378.82 and the UK 100 futures contract in the U.K. up 0.50% to 7,711.38.
Wall Street drops significantly as chipmakers and Mega caps decline.
U.S. stocks ended the day substantially lower on Friday as chipmakers fell on worries about sluggish consumer demand and Amazon (AMZN.O) and other Mega cap growth companies were under pressure from rising Treasury yields.
Indexes down: Dow 0.83%, S&P 1.22%, Nasdaq 1.56%.
Tesla (TSLA) is down 0.60% at 274.39, Apple (AAPL) is down 0.42% at 175.01, and Morgan Stanley (MS) is down 0.74% at 88.41. JPMorgan Chase & Co (JPM) is down 0.29% at 148.81, and Goldman Sachs Group Inc, (GS) is down 0.62% at 342.54.
Key Economic Events & Data Release for Upcoming Week:
(AUD) RBA Meeting Minutes (Tuesday).
(EUR) CPI (YoY) (Aug) (Tuesday).
(CAD) Core CPI (MoM) (Aug) (Tuesday).
(USD) Fed Interest Rate Decision (Wednesday).
(USD) FOMC Press Conference (Thursday).
(NZD) GDP (QoQ) (Q2) (Thursday).
(USD) Initial Jobless Claims (Thursday).
(GBP) BoE Interest Rate Decision (Thursday).