The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined ~105–120bps on higher d/d volume,
registering their second consecutive distribution day. The S&P 500 breached its 50-DMA and has immediate support near October highs of
5,878, followed by its 100-DMA (5,786; -2%). The Nasdaq closed below its 21-DMA and has immediate support near November highs of
19,366, followed by its 50-DMA (19,182; -2%). The distribution day count stands at five and six, respectively.
Author: Deepashree MC
Won Europe Today
We released our European Weekly Summary yesterday, click here to access the report. Key points from it include:
- European markets rose by approximately 1% during the holiday week, with trading volumes remaining subdued. The Stoxx 600 trades below its key moving averages facing resistance at its 10- and 21-DMA.
- Investor sentiment was boosted by recent ECB rate cuts, while expectations of additional Fed rate cuts, potentially triggered by heightened U.S. tariffs, could further benefit Eurozone markets in H1 FY25.
Won Europe Today
On Friday,
- European stocks closed higher as markets reopened after the Christmas break. Investors remain wary ahead of the U.S. President-elect Trump’s January 20 inauguration, with his inflationary policies and tariffs posing risks to European growth. Meanwhile, China’s industrial profits fell for the fourth consecutive month in November, raising concerns about global economic pressures that could weigh on European markets.
- Among key movers in the Stoxx 600, Swedish online gambling firm Evolution (EVOG.SE; EVO:SS) rose 3.7% as it recovered from earlier losses linked to a U.K. regulatory review while Delivery Hero (DHERX.DE; DHER:GR) fell 5.4% after Taiwan’s antitrust regulator blocked Uber’s $950M bid for its Foodpanda unit.
- The Stoxx 600 rose 0.7%, recording its second consecutive session of gains. It remains below all key moving averages with near-term resistance at its 50-DMA (+0.9%), and support at its December 20 lows. 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 positive. Oil & Gas (+188 bps), Automobile and Parts (+148bps), and Financial Services (+147bps) were the top gainers. There were no losers.
- Among major indices, France’s CAC 40 closed 1% higher, reclaiming its short-term moving averages. It is now testing resistance at its 50-DMA, and has next resistance at its 100-DMA (+1%). Germany’s DAX 30 gained 0.7%, inching closer to immediate resistance at its rising 21-DMA. Support is at its 50-DMA (-2%). The U.K.’s FTSE 100 advanced 0.2%. It is below all key moving averages, with immediate resistance at its 10-DMA (+0.4%).
- Finland, Norway, Sweden, and Switzerland were shifted to a Rally Attempt from a Downtrend.
- 15 of the 16 indices we track closed in the green. 14 are in a Rally Attempt, one is in an Uptrend Under Pressure, and one in a Downtrend. 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 Lottomatica Group (LOTG.IT; LTMC:IM), Talanx Aktgsf (TLXX.DE; TLX:GR), Technogym (TGYM.IT; TGYM:IM), and Schneider Electric (QT@F.FR; SU:FP).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. Last week, indices closed with a small gain despite pulling back on Friday.
The S&P 500 is testing support at its 50-DMA (5,941), while the Nasdaq is testing its 21-DMA (19,643), followed by its 50-DMA (19,160),
which is ~3% lower. The distribution day count increased to four and five on the S&P 500 and Nasdaq, 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 Symrise (SY1.DE; SY1:GR), Ambev On (AVS.BR; ABEV3:BZ), Hufvudstaden (HUA.SE; HUFVA:SS), and Deutsche Post (DHLX.DE; DHL:GR).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were down 4bps and 5bps, respectively, on high
d/d volume each and trading 1% off highs. Support is at their respective 21-DMA (5,996/19,643). The distribution day count on each index
stands at three and four, respectively.
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index has lost 3.3% in the past four sessions. It has breached support at its 200-DMA for the first time
after January. Support is at its July low of $77.2 (-2%). RS line is trending downward, with a low RS rating of 53, and worst-possible
Acc/Dist Rating of E.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were up 110bps and 135bps, respectively, on lower
d/d volume each, and trading 1% off highs. Support is at their respective 21-DMA (5,992/19,606). The distribution day count on each index
stands at three and four, respectively.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European markets extended their losses last week, driven by weak economic sentiment across the region and broader global market downturns. All sectors ended in the red, with Health Care and Basic Materials declining the most.
- On the rotation charts, most sectors weakened, with Financials and Capital Equipment slowing, while Cyclicals and Basic Materials showed short-term momentum. Retail weakened sharply, and Consumer Staples, Transportation, and Health Care declined further.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 was up 73bps after finding support at its 50-DMA, while the
Nasdaq rose 98bps, regaining its 21-DMA on low volume. The distribution day count on each index stands at three and four, respectively.
