The U.S. market remains in an Uptrend Under Pressure. Indices posted strong gains yesterday, with the S&P 500 and Nasdaq gaining
147bps and 195bps, respectively. Both indices are back above their short-term moving averages. Support is near their 21-DMA
(6,287/20,789), followed by their rising 50-DMA (6,139/20,133). The distribution day count stands at four and two, respectively.
Author: Deepashree MC
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the full report. Key points from it include:
- Last week, European indices pulled back from their recent 52-week highs. The U.K. (-0.4%) and Spain (-0.8%) outperformed, while Denmark fell 18% amid weakness in the Health Care sector. Only five markets, including the U.K., remain above their 50-DMA. France breached both its 50- and 200-DMA, while Germany, Italy, Ireland, Finland, Norway, and the Netherlands fell below their 50-DMA. Switzerland continues to face resistance at this level.
- All sectors ended the week in negative territory. Energy (-0.1%) and Utility (-0.7%) registered the smallest losses, while Health Care, Transportation, Basic Material, and Consumer Cyclical led the decline, with losses of 4–6%. The remaining sectors fell 1.0–2.5%.
Won Europe Today
On Friday,
- European stocks ended the week lower and registered their largest one-day decline in more than three months, with the U.S. abruptly announcing steep new tariffs, including a 39% tariff on Swiss imports, and moving its trade deal deadline from August 1 to August 7. The action surprised investors and revived tensions over international trade. Weaker-than-expected U.S. job growth in July further dampened sentiment and fueled expectations of a rate cut by the Fed in September.
- Among key movers on the Stoxx 600, shares of Italy’s Campari (CPR.IT; CPR:IM) rose 7.9% after the company posted higher y/y operating profit in Q2.
- The Stoxx 600 fell 1.9% and breached its 100-DMA. Next support is at its 200-DMA (-1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- All sectors closed in the red. Banks (-297bps), Travel & Leisure (-267bps), Technology (-259bps), and Health Care (-218bps) lagged the most.
- Among major indices, France’s CAC gapped down and fell 2.9%, breaking below all its long-term moving averages. Next support is at its September 2024 low (-3%), followed by its 50-DMA (-0.8%). Germany’s DAX also gapped down and declined 2.6%, breaching support at the 50-DMA. It has next support at its 100-DMA (-0.9%). The U.K.’s FTSE closed 0.7% lower and broke below its 10-DMA. Next support is at its 21-DMA (-0.8%)
- Switzerland’s market was closed on account of National Day. The remaining 15 markets that we track closed in the red. Four are in a Confirmed Uptrend, four in an Uptrend Under Pressure, three in a Rally Attempt, and five are in a Downtrend.
- Italy and Norway were shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the indices breached their 50-DMA. Sweden was shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the index breached its 21-DMA. Ireland was shifted to a Downtrend from a Rally Attempt after the index hit a new low. Finland was downgraded to a Downtrend from an Uptrend Under Pressure after the index breached its 50-DMA.
- Sweden recorded its fifth distribution day, while Italy recorded its third. The average distribution day count stood at 2.57.
- Of the 27 European Focus List names, 26 are trading above their 200-DMA, while19 names are trading above their 50-DMA.
- Actionable names in the Focus List include Technogym (TGYM.IT; TGYM:IM), Alk-Abello B (ALK.DK; ALKB:DC), and Nemetschek (Xet) (NEMX.DE; NEM:GR).
Won Global View
The U.S. market has shifted to an Uptrend Under Pressure. Indices staged a sharp downside reversal near all-time highs, declining
over 2% and closing below the 21-DMA (6,284/20,763) for the first time since the April 22 follow-through day. The next level of support on
the S&P 500 and Nasdaq is at the rising 50-DMA (6,130/20,290), which is poised to coincide with the top of the prior base consolidation.
The distribution day count stands at four and two, respectively.
Won Europe Today
We released our Weekly Global Laggards Report today. Click here to access the full report. The stocks highlighted in this report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further downside risk and underperformance. European stocks include Atlas Copco A (SR@G.SE; ATCOA:SS), Publicis Groupe (PUB.FR; PUB:FP), Kerry Group ‘A’ (KRZ.IE; KYGA:ID), Castellum (CAST.SE; CAST:SS), and STMicroelectronics (STM.IT; STMMI:IM).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined 37bps on higher volume, registering a distribution day, while
the Nasdaq was down 3bps on higher volume. The S&P 500 closed below its 10-DMA (6,342) for the first time since June 20, with next
support at the rising 21-DMA (6,288). The Nasdaq closed just above its 10-DMA (21,022), with the next level of support at its 21-DMA
(20,774). The distribution day count stands at four and two, respectively.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined 12bps on higher volume, while the Nasdaq gained 15bps on
lower volume. Indices have strong support at their rising 10-DMA (6,343/21,000), followed by their 21-DMA (6,283/20,739). The distribution day count remains at three and two, respectively.
Won Europe Today
Yesterday,
- European markets closed largely flat as investors evaluated the potential impact of U.S. tariffs on corporate earnings, with several major companies warning of price hikes in Q2. On the macro front, slightly better-than-expected Eurozone GDP data offered some support, while attention turned to the U.S. Federal Reserve’s policy decision due later in the day.
- The Stoxx 600 ended the session flat, with support at its 10-DMA. Next support is at its 21-DMA, followed by its 50-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among significant movers on the Stoxx 600, shares of Adidas (ADSX.DE; ADS:GR) plunged 11% after the company estimated a €200M hit due to the U.S tariffs in H2 FY25. It has also warned about potential price hikes in the U.S. On the flip side, shares of Dutch coffee maker JDE Peet (JDPS.NL; JDEP:NA) rose more than 10% after the company raised its FY25 sales guidance and mentioned a smaller impact from U.S. tariffs.
- Among sectors, Financial Services (+64bps) and Technology (+55bps) were the top performers, while Automobile (-191bps) and Chemical (176bps) led the losses.
- Among major indices, France’s CAC 40 closed flat and is testing support at its July 18 high. Near-term support is at its 10-DMA. Germany’s DAX 30 marked its second day of gains, closing 0.2% higher. It is testing support at its near-term moving averages. The U.K.’s FTSE 100 ended flat and is still trading at its all-time high.
- Spain was upgraded to a Confirmed Uptrend from a Rally Attempt as the index reclaimed its previous rally high. The Netherlands was shifted to a Rally Attempt from a Downtrend as the index recorded Day 3 of its rally attempt.
- Finland recorded its fifth distribution day.
- Eleven of the 16 indices we track closed in the red. Eight are in a Confirmed Uptrend, five in a Rally Attempt, two in an Uptrend Under Pressure, and one in a Downtrend. The average distribution day count stands at 2.44.
- All the 26 European Focus List names are trading above their 200-DMA, while 21 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Camurus (CAMX.SE; CAMX:SS), Alk-Abello B (ALK.DK; ALKB:DC), Lottomatica (LOTG.IT; LTMC:IM), Nemetschek (NEMX.DE; NEM:GR), Bawag (BWGP.AT; BG:AV), and Medacta (MOVE.CH; MOVE:SW).
Won Europe Today
Yesterday,
- European markets ended higher, supported by gains in financial and defense stocks. However, Denmark’s index tumbled nearly 12%, marking its steepest intraday drop this year after drugmaker Novo Nordisk (NON.DK; NOVOB:DC) issued a profit warning, dragging the broader pharmaceutical sector down by 1.6%.
- The Stoxx 600 gained 0.3%, rebounding from the losses in its previous two sessions and is trading above all its key moving averages. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among significant movers on the Stoxx 600, shares of Novo Nordisk (NON.DK; NOVOB:DC) fell ~23%, logging its all-time steepest intraday decline after the company trimmed its FY25 sales growth guidance and named a new CEO amid strong competition in the obesity drug market. On the flip side, shares of Philips (PHIL.NL; PHIA:GK), the Dutch healthcare technology group, rose 9% after the company lowered its estimated U.S. tariff impact.
- Among sectors, Banks (+163bps) and Energy (+61bps) led the gains, while Health Care (-147bps) and Mining (-99bps) lagged the most.
- Among major indices, France’s CAC 40 bounced off its 10-DMA, closing 0.7% higher. Next resistance is at its July 10 high (+0.6%). Germany’s DAX 30 reclaimed its 10- and 21-DMA. The index closed more than 1% higher after finding support at its 50-DMA. It is back above all its key moving averages. The U.K.’s FTSE 100 snapped its two-day losing streak, closing the session 0.6% higher. The index is near its all-time high.
- Denmark was downgraded to a Downtrend from a Confirmed Uptrend as the index closed ~12% lower, making a new low and breaching all its key support levels.
- The Netherlands recorded Day 2 of its rally attempt.
- All the 16 indices we track closed in the green, except Denmark and Finland. Seven are in a Confirmed Uptrend, five in a Rally Attempt, two in an Uptrend Under Pressure, and two in a Downtrend. The average distribution day count stands at 2.33.
- Of the 26 European Focus List names, 21 ideas are trading above their 50-DMA, while 25 are trading above their 200-DMA.
- Actionable names in the European Focus List are Camurus (CAMX.SE; CAMX:SS), Alk-Abello B (ALK.DK; ALKB:DC), Lottomatica (LOTG.IT; LTMC:IM),Nemetschek (NEMX.DE; NEM:GR), Bawag (BWGP.AT; BG:AV), and Medacta (MOVE.CH; MOVE:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined 30bps on higher volume, registering a distribution day, while
the Nasdaq was down ~40bps on lower volume. Indices have strong support at their rising 10-DMA (6,338/20,971), followed by their 21-
DMA (6,275/20,700). The distribution day count stands at three and two, respectively.
