. Weekly Index Analysis - Nasdaq Bullish, S&P 500 Resilient

Weekly Index Analysis – Nasdaq Bullish, S&P 500 Resilient

Weekly Index Analysis – Nasdaq Bullish, S&P 500 Resilient

25 May 2024

Introduction:

In the global indices market, Asian markets falter as disappointing US data dampens hopes for imminent rate cuts. Meanwhile, European stocks close lower amid concerns over interest rate prospects. Conversely, US stocks rebounded on Friday, buoyed by optimistic consumer outlook on inflation, driving the Nasdaq to a fifth consecutive week of gains and record closing high.

Market In Focus for the Next Week – Nasdaq 100

The NASDAQ 100 persists in its upward momentum.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18818.29 | Positive Crossover | Bullish
  • MA 20: 18753.89 | Positive Crossover | Bullish
  • MA 50: 18526.34 | Positive Crossover | Bullish

Simple:

  • MA 5: 18832.94 | Positive Crossover | Bullish
  • MA 20: 18767.76| Positive Crossover | Bullish
  • MA 50: 18503.45 | Positive Crossover | Bullish

RSI (Relative Strength Index): 61.72| Buy Zone| Bullish


Stochastic Oscillator: 32.74| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 18921.72 | R2: 19200.39
  • S1: 18628.54| S2: 18312.81


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion: Limit Buy : 18575.92 | Take Profit: 18959.31| Stop Loss: 18357.92.

S&P 500:

Tech shares drive the S&P 500 upwards to wrap up a week characterized by volatility.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5320.61 | Negative Crossover | Bearish
  • MA 20: 5317.42 | Positive Crossover | Bullish
  • MA 50: 5280.09 | Positive Crossover | Bullish

Simple:

  • MA 5: 5322.98 | Negative Crossover | Bearish
  • MA 20: 5327.00| Positive Crossover | Bullish
  • MA 50: 5283.38| Positive Crossover | Bullish

RSI (Relative Strength Index): 53.08| Buy Zone| Bullish


Stochastic Oscillator: 33.39|Sell Zone | Positive

Resistance And Support Levels:

  • R1: 5348.77 | R2: 5450.17
  • S1: 5260.64| S2: 5156.28


Overall Sentiment: Bullish | Market Direction: Buy


Trade Suggestion:  Limit Buy : 5239.77 | Take Profit: 5348.08| Stop Loss: 5174.03.

FTSE 100:

The FTSE 100 index concludes with a decline as growth decelerates.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7970.07 | Negative Crossover | Bearish
  • MA 20: 7961.36 | Negative Crossover | Bearish
  • MA 50: 7916.88 | Negative Crossover | Bearish

Simple:

  • MA 5: 8351.10 | Negative Crossover | Bearish
  • MA 20: 8384.96| Negative Crossover | Bearish
  • MA 50: 8362.06| Negative Crossover | Bearish

RSI (Relative Strength Index): 41.5| Neutral Zone| Neutral


Stochastic Oscillator: 19.27|Sell Zone | Positive

Resistance And Support Levels:

  • R1: 8382.1 | R2: 8485.2
  • S1: 8244.6| S2: 8099.5


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:   Limit Sell: 8347.7 | Take Profit: 8168.2| Stop Loss: 8469.9.

DAX 40:

Germany stocks showed a mixed performance at Friday’s close. Shares in the Food & Beverages, Insurance, and Retail sectors rose, while losses were observed in the Construction, Media, and Software sectors.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 18674.63 | Negative Crossover | Bearish
  • MA 20: 18686.05 | Positive Crossover | Bullish
  • MA 50: 18585.62 | Positive Crossover | Bullish

Simple:

  • MA 5: 18680.45 | Negative Crossover | Bearish
  • MA 20: 18704.46| Positive Crossover | Bullish
  • MA 50: 18592.95| Positive Crossover | Bullish

RSI (Relative Strength Index): 52.39| Positive Zone| Bullish


Stochastic Oscillator: 24.94|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 18733.3 | R2: 18942.7
  • S1: 18582.8| S2: 18288.3


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Limit Sell : 18772.6 | Take Profit: 18451.9| Stop Loss: 18968.9.


Elsewhere in the Indices Market

Asian markets experience declines following disappointing US data, denting hopes for imminent rate cuts.

The Shanghai composite is down at 0.88%. Overall, the Singapore MSCI down 0.19% to 311.05. Over in Hong Kong, the Hang Seng Index down 1.38% to 18,608.94. In Japan, the Nikkei 225 down 1.17% to 38,646.11, while the Topix index was down 0.44% to 2742.54. South Korea’s Kospi down 1.26% to 2,687.60. Australia S&P/ASX 200 down 1.08% to, 7,727.60.

European stocks conclude the session with losses as sentiment sours due to concerns surrounding the outlook for interest rates.

The DAX futures contract in Germany traded 0.01 higher, CAC 40 futures in France down 0.09% to 8,094.97 and the UK 100 futures contract in the U.K. down 0.26% to 8,317.59.

US stocks recovered from significant declines, on Friday.

Friday saw a rebound in US stocks following substantial losses the previous day. The market responded positively to news of an enhanced consumer outlook on inflation, propelling the Nasdaq to its fifth consecutive week of gains and achieving a new record closing high.

Indexes: Dow down 0.06%, S&P 500- up 0.70%, Nasdaq up 1.10%.


Corporate News:

Tesla (TSLA) up 3.17% at 179.24, Apple (AAPL) up at 1.66% at 189.98, Morgan Stanley (MS) up at 0.05% at 98.97. JPMorgan Chase & Co (JPM) up 1.92% at 200.71, Goldman Sachs Group Inc, (GS) up 0.66% at 461.18.

Key Economic Events & Data Release for Upcoming Week:

(EUR) German Ifo Business Climate Index (May) (Monday)

(CAD) Wholesale Sales (MoM) (Monday)

(AUD) Retail Sales (MoM) (Apr) (Tuesday)

(USD) CB Consumer Confidence (May) (Tuesday)

(EUR) German CPI (MoM) (May) (Wednesday)

(NZD) Annual Budget Release (Thursday)

(CHF) GDP (QoQ) (Q1) (Thursday)

(EUR) Unemployment Rate (Apr) (Thursday)

(USD) GDP (QoQ) (Q1) (Thursday)