. Weekly Index Analysis -Dow Soars, S&P Records, FTSE Struggles.

Weekly Index Analysis – Dow Soars, S&P Records, FTSE Struggles.

Weekly Index Analysis – Dow Soars, S&P Records, FTSE Struggles.

03 Feb 2024

Introduction:

Asian stocks are poised for a weekly gain, with attention focused on the upcoming US inflation test. The Shanghai composite has risen by 0.14%. Across the region, the Singapore MSCI is up 0.76% at 279.55. European equities have reached a two-year peak, driven by positive economic indicators and strong earnings reports. On Wall Street, there is an uptrend fueled by robust GDP data. The strong start to the year for the US stock market faces a significant challenge next week, with a busy schedule featuring major tech earnings, the Federal Reserve’s monetary policy meeting, and the eagerly awaited employment report.

Market In Focus for the Next Week – Dow Jones

The Dow Jones advanced amid a broad rally in the equity markets.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38642.70 | Positive Crossover | Bullish
  • MA 20: 38425.32 | Positive Crossover | Bullish
  • MA 50: 38077.36 | Positive Crossover | Bullish

Simple:

  • MA 5: 38647.07 | Positive Crossover | Bullish
  • MA 20: 38425.37| Positive Crossover | Bullish
  • MA 50: 38077.31 | Positive Crossover | Bullish

RSI (Relative Strength Index): 65.09| Buy Zone| Bullish

Stochastic Oscillator: 46.24| Buy Zone |Positive

Resistance And Support Levels:

  • R1: 38889.50 | R2: 39572.98
  • S1: 38073.74| S2: 37280.02

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 38139.88 | Take Profit: 38889.50| Stop Loss: 37698.93.

S&P 500:

The S&P 500 reached new highs following the robust Non-Farm Payrolls report.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4910.10 | Positive Crossover | Bullish
  • MA 20: 4878.55 | Positive Crossover | Bullish
  • MA 50: 4822.77 | Positive Crossover | Bullish

Simple:

  • MA 5: 4910.87 | Positive Crossover | Bullish
  • MA 20: 4878.57| Positive Crossover | Bullish
  • MA 50: 4822.76| Positive Crossover | Bullish

RSI (Relative Strength Index): 68.10| Bullish Zone| Positive

Stochastic Oscillator: 18.76|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4994.29 | R2: 5083.60
  • S1: 4872.23| S2: 4765.06

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4875.21 | Take Profit: 4994.29| Stop Loss: 4803.76.

FTSE 100:

European stock markets experienced an upward movement on Friday, driven by a series of corporate earnings reports and significant decisions from major central banks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7654.65 | Negative Crossover | Bearish
  • MA 20: 7650.54 | Negative Crossover | Bearish
  • MA 50: 7584.62 | Positive Crossover | Bullish

Simple:

  • MA 5: 7661.00 | Negative Crossover | Bearish
  • MA 20: 7650.55| Negative Crossover | Bearish
  • MA 50: 7584.66| Positive Crossover | Bullish

RSI (Relative Strength Index): 51.15| Buying Zone| Buy

Stochastic Oscillator: 17.95|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 7690.2 | R2: 7778.6
  • S1: 7586.7| S2: 7479.4

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Stop Sell: 7628.5 | Take Profit: 7554.1| Stop Loss: 7686.6.

DAX 40:

Germany’s DAX Index surged, propelled by strong corporate earnings and decisive actions from central banks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17025.95 | Negative Crossover | Bearish
  • MA 20: 17025.01 | Positive Crossover | Bullish
  • MA 50: 16857.09 | Positive Crossover | Bullish

Simple:

  • MA 5: 17029.06 | Negative Crossover | Bearish
  • MA 20: 17025.05| Positive Crossover | Bullish
  • MA 50: 16857.09| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.05| Positive Zone| Bullish

Stochastic Oscillator: 50.07|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 17190.4 | R2: 17423.0
  • S1: 16906.1| S2: 16639.0

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 16931.9 | Take Profit: 17190.4| Stop Loss: 16768.2.

Elsewhere in the Indices Market

Asian Shares buoyed by US tech bounce, with investors focusing on upcoming payroll data.

The Shanghai composite is down at 1.46%. Overall, the Singapore MSCI up 1.60% to 280.48. Over in Hong Kong, the Hang Seng Index down by 0.21% to 15,533.56. In Japan, the Nikkei 225 up 0.41% to 36,158.02, while the Topix index was up 0.22% to 2,539.68. South Korea’s Kospi up 2.87% to 2,615.31. Australia S&P/ASX 200 up 1.47% to, 7,699.40.

European stock markets end with a mixed performance following an unexpected U.S. jobs report.

The DAX futures contract in Germany traded 0.35% higher, CAC 40 futures in France up 0.05% to 7,592.26, and the UK 100 futures contract in the U.K. down 0.09% to 7,615.54.

All three major U.S. stock indexes notched their fourth consecutive weekly gains.

U.S. stocks surged on Friday, with the S&P 500 reaching a record closing high, fuelled by robust earnings and an impressive January employment report. The strong economic indicators, however, reduced the likelihood of an imminent interest rate cut by the Federal Reserve.

Indexes: Dow up 0.35%, S&P up 1.05%, Nasdaq up 1.74%.

Corporate News:

Tesla (TSLA) down 0.50% at 187.91, Apple (AAPL) down at 0.54% at 185.85, Morgan Stanley (MS) down at 0.52% at 87.27. JPMorgan Chase & Co (JPM) up 0.58% at 174.73, Goldman Sachs Group Inc, (GS) up 1.04% at 387.86.

Key Economic Events & Data Release for Upcoming Week:

(USD) ISM Non- Non-Manufacturing PMI (Jan) (Monday)

(AUD) Retail Sales (MoM) (Monday)

(AUD) RBA Interest Rate Decision (Feb) (Monday)

(NZD) Employment Change (QoQ) (Q4) (Tuesday)

(EUR) German Industrial Production (MoM) (Dec) (Wednesday)

(USD) Initial Jobless Claims (Thursday)