The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined 1.1% and 1.9%, respectively, with the
Nasdaq adding its eighth distribution day. The S&P 500 broke below its 50-DMA, with support at its 100-DMA (5,814), while the Nasdaq
has support at its 50-DMA (19,288). The distribution day count remains elevated at six and eight, respectively.
Author: Deepashree MC
Won Europe Today
Yesterday,
- European markets closed higher, driven by gains in the Energy sector, as investors analyzed mixed economic data. A slight uptick in Eurozone’s inflation in December has intensified attention on the European central bank’s upcoming policy meeting on January 30, making inflation a key factor influencing market outlook.
- Among key movers on the Stoxx 600, shares of Kion Group (KGXX.DE; KGX:GR) jumped 9.5% after the company partnered with Accenture and Nvidia to implement AI-powered robots in supply chains. Shares of Sodexo (SDX.FR; SW:FP) fell ~8% after the French food services company reported lower-than-expected organic revenue for Q1 FY25.
- The Stoxx 600 continued the upward trajectory and gained 0.3%. It has reclaimed its 100-DMA and is now above all its key moving averages. Immediate resistance is at its December 2024 high (+1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- The overall sector performance was negative. Basic Resources (-104bps), Utility (-48bps), and Banks (-37bps) were the top losers, while Oil & Gas (+62bps) and Food & Beverages (+43bps) were the among the major gainers.
- Among major indices, France’s CAC 40 rose 0.6%, inching closer to immediate resistance at its October 2024 high (+1.5%). Germany’s DAX 30 gained for the second consecutive session and closed 0.6% higher. It is above all its key moving averages and has immediate resistance at its 52-week high (+0.5%). The U.K.’s FTSE 100 closed flat. Next resistance is at its December 2024 high (+1%).
- Denmark was shifted to an Uptrend Under Pressure from a Confirmed Uptrend. The index recorded its first distribution day.
- Twelve of the 16 markets we track closed in the green. Four are in a Confirmed Uptrend, two in an Uptrend Under Pressure, and 10 in a Rally Attempt. The average distribution day count stood at 2.5.
- Of the 30 European Focus List names, 27 ideas are trading above their 200-DMA, while23 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Adyen (ADYE.NL; ADYEN:NA), Adidas (ADSX.DE; ADS:GR), and Relx (REL.GB; REL:LN).
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European indices traded flat last week. Norway outperformed on gains in the Oil and Gas sector, nearing its 52-week high. Austria, Belgium, and Germany traded strongly, while other indices faced resistance at their key moving averages.
- Rotation Chart. Energy and Utility gained momentum, while Retail, Health Care, and Technology struggled. Financial and Capital Equipment witnessed steady momentum, which showed signs of slowing.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq gained 55bps and 124bps on higher d/d volume,
respectively. The S&P 500 regained its 50-DMA and settled slightly above its 21-DMA. Indices are 2% off highs and above all major
moving averages. The distribution day count remains elevated at six and seven, respectively.
Won Europe Today
On Friday,
- European markets closed lower in a shortened trading week, dragged down by losses in Luxury and China-exposed sectors like Miners and Automakers. Worries over China’s slowing economy and potential trade tensions with the U.S. under the new administration added to market uncertainty, while investors looked to economic data for clarity on future interest rate moves.
- Among key movers on the Stoxx 600, shares of Stellantis (STL.IT; STLAM:IM) fell 3.8% on a 45.7% y/y decline in production in 2024. Shares of Campari (CPR.IT; CPR:IM) and Anheuser-Busch InBev (ABI.BE; ABI:BB) fell 5.2% and 2.8%, respectively, after the U.S. surgeon general called for cancer warnings on alcohol labels.
- The Stoxx 600 reversed after hitting resistance at its declining 50-DMA and fell 0.5%. It was testing support at its 10-DMA. Next support is at its December 20 lows (-1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- The overall sector performance was negative. Basic Resources (-180bps), Travel & Leisure (-178bps), and Automobiles & Parts (-175bps) were the top losers, while Oil & Gas (+94bps) and Utility (+15bps) were the only gainers.
- Among major indices, France’s CAC 40 declined 1.5% after facing resistance at its 100-DMA, breaking below its 50-DMA and short-term moving averages. Support is at its November 27 lows (-2%). Germany’s DAX 30 hit resistance at its declining 10-DMA and lost 0.6%. Next support is at its 50-DMA (-1%). The U.K.’s FTSE 100 breached its 100-DMA and closed 0.4% lower, with next support at its 50- and 200-DMA.
- Twelve of the 16 indices we track closed in the red. Three are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and 12 in a Rally Attempt. The average distribution day count stood at four.
- Of the 29 European Focus List names, 26 ideas are trading above their 200-DMA, while 16 ideas are trading below their 50-DMA.
- Actionable names in the Focus List include Talanx Aktgsf (TLXX.DE; TLX:GR), Relx (REL.GB; REL:LN), and Schneider Electric (QT@F.FR; SU:FP).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. Last Friday, the S&P 500 and Nasdaq gained 1.3% and 1.8%, respectively, on
above average but lower d/d volume. The S&P 500 has immediate support at its 100-DMA (5,804; -2.4%) while testing the first level of
resistance at its 50-DMA (5,945). The Nasdaq bounced from support at its 50-DMA (19,235) and is testing resistance at its 21-DMA
(19,581). The distribution day count remains elevated at six and seven, respectively.
Won Europe Today
We released our Weekly Global Laggards Report today. Click here to access the 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 Rockwool (ROC.DK; ROCKBC:IX).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined ~15–20bps on lower d/d volume. The S&P
500 has immediate support at its 100-DMA (5,798; -1%), with the first level of resistance at its 50-DMA (5,943; +1%). The Nasdaq is
testing support at its 50-DMA (19,214), with next support near July 2024 highs of 18,671. The distribution day count remains at six and
seven, respectively.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined ~45–90bps on higher d/d volume,
registering their third consecutive distribution day. The S&P 500 has immediate support near October highs of 5,878, followed by its 100-
DMA (5,792; -2%), while the Nasdaq has immediate support at its 50-DMA (19,199; -1%). The distribution day count stands at six and
seven, respectively.
Won Europe Today
On Tuesday,
- European markets ended the year on a positive note in a shortened trading session ahead of the New Year holiday. The Stoxx 600 gained nearly 6% over the year, with Banks (+25%), Telecom (+16%), and Financial Services (+15%) emerging as the top-performing sectors. Meanwhile, Food & Beverage, Autos, and Mining sectors underperformed, each recording a decline of around 12%.
- Among significant movers on the Stoxx 600, shares of Canal Plus (CAN.GB; CAN:LN) were up more than 4%, while shares of the Portuguese energy group Galp Energia (GES.PT; GALP:PL) fell more than 4%.
- The Stoxx 600 tested resistance at its declining 10-DMA and closed flat. The index continued to trade below all its key moving averages. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- All the sector ETFs remained closed.
- Among major indices, France’s CAC 40 closed around 1% higher, retaking its 21- and 50-DMA intraday on lower volume. Next resistance is at its 100-DMA.The U.K.’s FTSE 100 was up 0.6% and reclaimed its 10-DMA. Next resistance is at its 200-DMA.
- Seven of the 16 indices we track closed in the green, while the others remained closed on account of a market holiday. One index is in an Uptrend Under Pressure, while all other indices are in a Rally Attempt.
- Of the 29 European Focus List names, 26 ideas are trading above their 200-DMA, while 16 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Adyen (ADYE.NL; ADYEN:NA), Schneider Electric (QT@F.FR; SU:FP), and Relx (REL.GB; REL:LN).
