. Weekly Index Analysis - Global markets panic, tech turmoil looms.

Weekly Index Analysis – Global markets panic, tech turmoil looms.

Weekly Index Analysis – Global markets panic, tech turmoil looms.

16 Mar 2024


Introduction:

Asian markets falter as hopes for a prompt US rate cut dwindle following a wave of data releases. The Shanghai composite sees a slight uptick of 0.54%, contrasting with declines across Singapore, Hong Kong, Japan, South Korea, and Australia. In Europe, concerns over US interest rates weigh on stocks. Meanwhile, Wall Street faces a downturn, primarily led by tech stocks, as investors gauge the impending Federal Reserve meeting’s impact.

Market In Focus for the Next Week – Nasdaq 100

The NASDAQ experienced a downturn as traders persisted in profit-taking activities within the tech sector.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18121.20 | Negative Crossover | Bearish
  • MA 20: 18118.65 | Negative Crossover | Bearish
  • MA 50: 18060.05 | Positive Crossover | Bullish

Simple:

  • MA 5: 18136.89 | Negative Crossover | Bearish
  • MA 20: 18120.81| Negative Crossover | Bearish
  • MA 50: 18094.24 | Negative Crossover | Bearish

RSI (Relative Strength Index): 47.67| Buy Zone| Bullish

Stochastic Oscillator: 50.06| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 18145.81 | R2: 18784.64
  • S1: 18075.34| S2: 17630.84

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion: Stop Sell: 18018.59 | Take Profit: 17630.84| Stop Loss: 18273.94.

S&P 500:

On Friday, the S&P 500 registered its second consecutive weekly decline as the technology sector faced pressure from increasing Treasury yields, causing apprehension among investors.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5180.52 | Positive Crossover | Bullish
  • MA 20: 5165.07 | Positive Crossover | Bullish
  • MA 50: 5126.89 | Positive Crossover | Bullish

Simple:

  • MA 5: 5182.82 | Positive Crossover | Bullish
  • MA 20: 5162.75| Positive Crossover | Bullish
  • MA 50: 5128.45| Positive Crossover | Bullish

RSI (Relative Strength Index): 57.54| Bullish Zone| Positive

Stochastic Oscillator: 57.01|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 5191.57 | R2: 5291.85
  • S1: 5091.29| S2: 4981.46

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5086.51 | Take Profit: 5191.57| Stop Loss: 5026.82.

FTSE 100:

The FSTE 100 closed down for Friday but was still up almost 1% for the week.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7757.72 | Positive Crossover | Bearish
  • MA 20: 7739.58 | Positive Crossover | Bullish
  • MA 50: 7707.36 | Positive Crossover | Bullish

Simple:

  • MA 5: 7770.52 | Negative Crossover | Bearish
  • MA 20: 7733.92| Positive Crossover | Bullish
  • MA 50: 7699.28| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.53| Buying Zone| Buy

Stochastic Oscillator: 53.63|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 7782.3 | R2: 7891.0
  • S1: 7698.5| S2: 7607.0

Overall Sentiment: Positive | Market Direction: Buy

Trade Suggestion:   Limit Buy: 7704.2 | Take Profit: 7793.8| Stop Loss: 7648.9.

DAX 40:

Germany stocks ended lower on Friday, driven by declines in the Technology, Financial Services, and Construction sectors, which dragged down overall share prices.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17986.63 | Positive Crossover | Bullish
  • MA 20: 17920.55 | Positive Crossover | Bullish
  • MA 50: 17734.22 | Positive Crossover | Bullish

Simple:

  • MA 5: 18005.09 | Positive Crossover | Bullish
  • MA 20: 17911.35| Positive Crossover | Bullish
  • MA 50: 17750.22| Positive Crossover | Bullish

RSI (Relative Strength Index): 63.64| Positive Zone| Bullish

Stochastic Oscillator: 65.21|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 18087.4 | R2: 18456.0
  • S1: 17685.7| S2: 17210.3

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 17644.8 | Take Profit: 18046.4| Stop Loss: 17407.0.

Elsewhere in the Indices Market

Asian markets decline as hopes for an imminent US rate cut diminish following a flurry of data releases.

The Shanghai composite is up at 0.54%. Overall, the Singapore MSCI is down 1.04% to 290.65. Over in Hong Kong, the Hang Seng Index down 1.42% to 16,720.89. In Japan, the Nikkei 225 was down 0.26% to 38,707.64, while the Topix index was up 0.35% to 2670.80. South Korea’s Kospi down 1.91% to 2,666.84. Australia S&P/ASX 200 is down 0.56% to, 7,670.30.

European stocks stumble due to concerns over US interest rates.

The DAX futures contract in Germany traded 0.03 lower, CAC 40 futures in France up 0.04% to 8,164.35 and the UK 100 futures contract in the U.K. down 0.20% to 7,727.42.

Wall Street experiences a decline fuelled by tech-related stocks as investors evaluate the outlook for interest rates.

On Friday, US stocks declined, driven by technology-related mega caps that have been driving this year’s rally, as investors assessed the interest rate outlook before the upcoming Federal Reserve meeting.

Indexes: Dow down 0.5%, S&P 500- down 0.7%, Nasdaq down 1%.

Corporate News:

Tesla (TSLA) is up 0.66% at 163.57, Apple (AAPL) is down 0.22% at 172.62, and Morgan Stanley (MS) is down 0.81% at 88.38. JPMorgan Chase & Co (JPM) is up 1.24% at 190.30, and Goldman Sachs Group Inc, (GS) is down 0.36% at 387.21.

Key Economic Events & Data Release for Upcoming Week:

(JPY) BoJ Monetary Policy Statement (Monday)

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

(JPY) BoJ Press Conference (Tuesday)

(CAD) Core CPI (MoM) (Feb) (Tuesday)

(USD) Building Permits (Feb) (Tuesday)

(GBP) CPI (YoY) (Feb) (Wednesday)

(EUR) ECB President Lagarde Speaks (Wednesday)

(USD) Fed Interest Rate Decision (Wednesday)

(USD) FOMC Statement (Wednesday)

(USD) FOMC Press Conference (Wednesday)

(NZD) GDP (QoQ) (Q4) (Wednesday)

(EUR) German Manufacturing PMI (Mar) (Thursday)

(CHF) SNB Press Conference (Thursday)

(GBP) Service PMI (Thursday)

(GBP) BOE Interest Rate Decision (Mar) (Thursday)

(USD) Initial Jobless Claims at 08:30 (Thursday)