Weekly Index Analysis – S&P 500 Dip Signals Market Decline
23 Sep 2023
Amidst the global financial landscape, the GBP/USD isn’t the only market facing challenges. In the Asian indices market, stocks grapple with headwinds emanating from Wall Street’s recent slide. While some markets like Shanghai and Hong Kong show resilience, others like Japan and South Korea face fluctuations. In Europe, shares are poised for a weekly drop, with the specter of higher interest rates looming. Meanwhile, on Wall Street, the week concludes with declines, reflecting a turbulent period shaped by the Federal Reserve’s hawkish stance and surging Treasury rates.
Market In Focus for the Next Week – S&P 500
The S&P 500 fell below its 100-day moving average on Thursday for the first time since March. The fact that it was unable to break above that level shows that the index is still under pressure to decline.
- MA 5: 4397.08 | Negative Crossover | Bearish
- MA 20: 4450.14 | Negative Crossover | Bearish
- MA 50: 4456.03 | Negative Crossover | Bearish
- MA 5: 4405.62 | Negative Crossover | Bearish
- MA 20: 4472.05| Negative Crossover | Bearish
- MA 50: 4493.10 | Negative Crossover | Bearish
RSI (Relative Strength Index): 34.29 | Sell Zone | Bearish
Stochastic Oscillator: 0.00 | Sell Zone | Negative
Resistance And Support Levels:
- R1: 4500.16 | R2: 4634.27
- S1: 4350.28 | S2: 4160.95
Overall Sentiment: Bearish | Market Direction: Sell
Trade Suggestion: Stop Sell: 4306.89 | Take Profit: 4160.95 | Stop Loss: 4429.17.
Elsewhere in the Indices Market.
Asia stocks face headwinds from Wall Street slide.
The Shanghai composite is up at 1.55%. Overall, the Singapore MSCI is down 0.52% to 278.05. Over in Hong Kong, the Hang Seng Index is up by 2.28% to 18,057.45. In Japan, the Nikkei 225 was down 0.52% to 32,402.41, while the Topix index was up 0.95% to 2,428.38. South Korea’s Kospi down 0.27% to 2,508.13. Australia S&P/ASX 200 is up 0.51% to, 7,068.80.
European shares set for weekly drop as higher-for-longer rates loom.
The DAX futures contract in Germany traded 0.09% lower, CAC 40 futures in France down 0.40% to 7,184.82 and the UK 100 futures contract in the U.K. up 0.07% to 7,683.91.
US STOCKS-Wall St declines, erasing early gains as the recovery loses steam.
Wall Street fluctuated to a lower close on Friday, capping a turbulent week in which investors digested the Federal Reserve’s hawkish outlook revisions and benchmark Treasury rates touched 16-year highs.
Indexes down: Dow 0.31%, S&P 0.23%, Nasdaq 0.09%.
Tesla (TSLA) is down 4.23% at 244.88, Apple (AAPL) up 0.49% at 174.79, and Morgan Stanley (MS) is down at 1.87% at 83.29. JPMorgan Chase & Co (JPM) is down 0.96% at 145.73, and Goldman Sachs Group Inc, (GS) is down 0.71% at 327.89.
Key Economic Events & Data Release for Upcoming Week:
(USD) Building Permits (Tuesday).
(USD) CB Confidence Confidence (Sep) (Tuesday).
(USD) Crude Oil Inventories (Wednesday).
(AUD) Retail Sales (MoM) (Aug) (Thursday).
(USD) GDP (QoQ) (Q2) (Thursday).
(USD) Initial Jobless Claims (Thursday).