. Weekly Index Analysis - S&P 500 Plummets as Middle East Tensions

Weekly Index Analysis – S&P 500 Plummets as Middle East Tensions

Weekly Index Analysis – S&P 500 Plummets as Middle East Tensions

21 Oct 2023

Introduction:

In the world of stock indices, Asian markets slumped because of growing concerns over Federal Reserve decisions and the Middle East situation. Key indices like the Shanghai Composite, Singapore MSCI, Hang Seng Index in Hong Kong, Nikkei 225 in Japan, and others witnessed declines. European stocks also faced a significant weekly drop due to geopolitical and rate-related anxieties. Meanwhile, Wall Street concluded the week with substantial losses as apprehensions over the Middle East conflict and potential interest rate hikes continued to weigh on investor sentiment.

Market In Focus for the Next Week – S&P 500

Wall St ends sharply lower, posts weekly losses; Middle East fears increase. The S&P 500 fell more than 1%. All the S&P 500 index’s 11 sectors ended lower in broad-based selling, with technology and financials among the biggest drags.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4313.33 | Negative Crossover | Bearish
  • MA 20: 4355.28 | Negative Crossover | Bearish
  • MA 50: 4392.09 | Negative Crossover | Bearish

Simple:

  • MA 5: 4338.64 | Negative Crossover | Bearish
  • MA 20: 4340.44| Negative Crossover | Bearish
  • MA 50: 4408.08 | Negative Crossover | Bearish

    RSI (Relative Strength Index): 35.19 | Sell Zone | Bearish

Stochastic Oscillator: 44.44 | Neutral Zone | Negative

Resistance And Support Levels:

  • R1: 4350.28 | R2: 4492.27
  • S1: 4235.89| S2: 4101.79

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 4184.62 | Take Profit: 4101.79 | Stop Loss: 4243.78.

Elsewhere in the Indices Market.

Asian stock slump as Fed jitters, Middle East fears rattle risk appetite.

The Shanghai composite is down at 0.64%. Overall, the Singapore MSCI is down 1.11% to 272.15. Over in Hong Kong, the Hang Seng Index is down by 0.72% to 17,172.13. In Japan, the Nikkei 225 was down 0.54% to 31,259.36, while the Topix index was down 0.38% to 2,255.65. South Korea’s Kospi down 1.69% to 2,375.00. Australia S&P/ASX 200 is down 1.16% to, 6,900.70.

European stocks see a steep weekly decline on geopolitical, rate jitters.

The DAX futures contract in Germany traded 1.64% lower, CAC 40 futures in France down 1.52% to 6,816.22, and the UK 100 futures contract in the U.K. down 1.30% to 7,402.14.

Wall Street closed with significant losses at the end of the week, marking a week of overall declines, as concerns over the Middle East situation escalated.

On Friday, U.S. stocks closed significantly down for both the day and the week, with investor concerns focused on the possibility of further interest rate increases and the potential spread of the Israel-Hamas conflict.

Indexes: Dow up 0.9%, S&P down 1.3%, Nasdaq up 1.5%.
Corporate News:

Tesla (TSLA) is down 3.69% at 211.99, Apple (AAPL) is down 1.47% at 172.88, and Morgan Stanley (MS) up 0.29% at 73.13. JPMorgan Chase & Co (JPM) is down 1.61% at 142.00, and Goldman Sachs Group Inc, (GS) up 0.29% at 300.05.

Key Economic Events & Data Release for Upcoming Week:

(EUR) German Manufacturing PMI (Oct) (Tuesday).

(GBP) Manufacturing PMI (Tuesday).

(AUD) CPI (QoQ) (Q3) (Wednesday)

(USD) Building Permits (Wednesday).

(USD) New Home Sales (Sep) (Wednesday).

(CAD) BoC Interest Rate Decision (Wednesday).

(USD) Fed Chair Powell Speaks (Thursday)

(EUR) ECB Interest Rate Decision (Oct) (Thursday).

(USD) GDP (QoQ) (Q3) (Thursday)

(USD) Initial Jobless Claims (Thursday)

(EUR) ECB Press Conference (Thursday)