The U.S. market is in a Downtrend. The S&P 500 and Nasdaq bounced strongly off March lows and back above their respective 200-DMA. We will be looking for Monday’s lows (S&P 500: 2,728; Nasdaq: 7,292) to hold over the next two sessions before watching for a follow-through day as early as Friday.
Author: Anuj Kumar Chouhan
Won Europe Today
European markets reversed losses earlier in the day to close in the green. The Stoxx 600 closed 0.30% higher. Health Care and Food & Beverages led the gains.
France’s CAC 40 was up 0.65%, followed by Germany’s DAX and the U.K.’s FTSE 100, which gained 0.56% and 0.32%, respectively.
Portugal, Belgium, and Luxembourg closed in negative territory.
WON Global View
The U.S. market is in a Downtrend. The S&P 500 and Nasdaq are now testing support at March lows (S&P 500: 2,722; Nasdaq: 7,332). The next level of support is ~2,700 on the S&P 500 and ~7,300 on the Nasdaq. We have yet to see any meaningful bounce that could serve as a new day one of an attempted rally.
Won Europe Today
European markets closed decisively lower with worries there could be a flare up of a full-fledged trade war.
The Stoxx 600 closed 0.81% lower, with trade-sensitive Autos dragging the index down. The index breached its previous low on Wednesday.
Among other major bourses, Germany’s DAX dropped 1.47%. France’s CAC 40 and the U.K.’s FTSE 100 closed 0.79% and 0.78% down, respectively. The heavier volume of selloff also indicated increased fear in investors.
The only country to close in positive territory was Denmark.
We downgraded the U.K. and Finland to a Downtrend and Spain to an Uptrend Under Pressure.
WON Global View
The U.S. market is in a Downtrend. The S&P 500 and Nasdaq both closed below their respective 200-DMA on Friday and are now set to test support near March lows (S&P 500: 2,722; Nasdaq: 7,332). We are still waiting for a new Rally Attempt to develop and for the market to stage a follow-through day before advising any meaningful increase in risk.
Won Europe Today
European markets: The iShares DJ Stoxx 600 was shifted to a Downtrend this week along with several other markets in the region. We recommend avoiding initiating new positions in this environment and we haven’t added new stocks to our Focus List in the region.
WON Global View
The U.S. market is in a Downtrend. The S&P 500 and Nasdaq are still holding above their respective 200-DMA despite yesterday’s unconvincing bounce. We are still looking for a new Rally Attempt and an eventual follow-through day before recommending an increase in
risk.
Won Europe Today
Markets were gloomy after China hinted at using its dominance in the Rare Earth materials supply in the trade war with
the U.S.
The Stoxx 600 closed 1.46% lower, with Technology stocks losing more than 2%.
France’s CAC 40 lost 1.70% while Germany’s DAX fell 1.57%. The U.K.’s FTSE 100 also lost 1.15%. Volume across markets
was lower than the previous day.
However, we downgraded Germany to an Uptrend Under Pressure and the Stoxx600, Ireland, Norway, Sweden, Austria,
Portugal, and Belgium to a Downtrend. All these indices breached prior low.
WON Global View
The U.S. market has been shifted back to a Downtrend.The S&P 500 undercut the May 13 low of 2,801. We are now looking for the S&P 500 and Nasdaq to establish and hold a new low for three days before again looking for a follow-through day. Near-term support remains the 200-DMA (S&P 500: 2,776; Nasdaq: 7,527). Should the lows from yesterday be undercut, support moves to March lows (S&P 500: 2,722; Nasdaq: 7,332).
Won Europe Today
Thirteen of the 17 indices we cover closed in the red. The markets seemed to be concerned over renewed tensions between Rome and Brussels over Italy’s debt and deficits.
- The Stoxx 600 closed 0.18% lower, dragged by Chemicals and Real Estate. Basic Resources and Auto gained the most.
- Among major bourses, France’s CAC 40 lost 0.44%, followed by Germany’s DAX and the U.K.’s FTSE 100, which fell 0.37% and 0.12%, respectively.
- Only countries to close in positive territory were Denmark, Ireland, Belgium, and Luxembourg.
- We upgraded Austria and Portugal to a Rally Attempt after the indices kept above their previous lows for three consecutive days.
