The U.S. market is in a Rally Attempt. On Friday, the S&P 500 and Nasdaq gained ~54bps and ~65bps, respectively. Indices were up
five days in a row last week after finding support at their 100-DMA. They have now retaken and held above their 21-DMA (6,736/22,967)
and 50-DMA (6,725/22,943). The window for a follow-through day (+1.7% on higher d/d volume) remains open, or the market could be
shifted to a Confirmed Uptrend if either index closes at a new high.
Author: Deepashree MC
Won Europe Today
On Friday,
- European markets ended the week on a strong note as investors wrapped up a volatile month marked by concerns
over stretched AI valuations. Global sentiment improved, supported by growing expectations of a U.S. Federal
Reserve rate cut in December. Among sectors, Mining led the advance as copper prices hit a record high. - The Stoxx 600 gained for a fifth consecutive session, closing 0.2% higher. It is trading above all its key moving
averages, with next resistance at its mid-November high (+1%). We recommend a selective approach to adding
names on a high-volume breakout or decisive retake of their key resistance levels. - Among key movers on the Stoxx 600, shares of German online retailer Delivery Hero (DHERX.DE; DHER:GR)
closed 14.6% higher following reports of a potential sale of all or parts of its business. - Among sectors, Mining (+134bps) and Energy (+101bps) were the top gainers, while Travel & Leisure (-82bps) and
Health Care (-11bps) lagged. - Among major indices, France’s CAC 40 closed 0.3% higher. The index retook its 21- and 50-DMA during the week
and is trading above all key moving averages. Germany’s DAX 30 extended its rally and closed 0.4% higher. It is
finding support at its 21-DMA. Near-term resistance is at its flattish 50- and 100-DMA. The U.K.’s FTSE 100 closed
0.3% higher and is trading constructively after retaking its near-term moving averages. - Twelve of the 16 indices we track closed in the green. Three are in a Confirmed Uptrend, seven in an Uptrend
Under Pressure, and six in a Rally Attempt. The average distribution day count stands at 4.5. - Actionable names in the European Focus List are Ambea (AMBE.SE; AMBEA:SS), Arcelor Mittal (MT.NL; MT:NA),
and Odfjell Drilling (ODDR.NO; ODL:NO).
Won Global View
The U.S. market is in a Rally Attempt. On Wednesday, the S&P 500 gained 69bps on slightly above d/d volume, while the Nasdaq
gained 82bps on lower d/d volume. Indices gained for the fourth day straight and have support at their 21-DMA (6,724/22,927) and 50-
DMA (6,721/22,925). The window for a follow-through day (+1.7% on higher d/d volume) remains open.
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 Thales (CSF.FR; HO:FP) and Choc.
Lindt & Spruengli (LISN.CH; LISN:SW).
Won Europe Today
Yesterday,
- European markets ended in positive territory, supported by gains in tech shares, as expectations of an upcoming
U.S. rate cut lifted investor sentiment. Financial stocks also gained following the release of the U.K. budget details. - The Stoxx 600 rose more than 1% on higher volume. The index bounced off its 50-DMA and retook its 10- and 21-
DMA. It is now 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 key movers on the Stoxx 600, shares of Danish pharmacy group Novo Nordisk (NON.DK; NOVOB:DC)
rallied 4.7% after negotiated prices for 15 of its costly drugs, including Ozempic and Wegovy, came in line with
expectations. - Most sectors ended in the green, with Technology (+216bps) and Banks (+179bps) leading the gains. Food and
Beverage (-38bps) and Automobiles (-30bps) were the sole decliners. - Among major indices, France’s CAC 40 retook its 10-, 21-, and 50-DMA intraday and closed the session 0.9%
higher. The index is trading above all its key moving averages. Germany’s DAX 30 closed 1.1% higher and
reclaimed its 200-DMA. The index also retook its 10- and 21-DMA and ended in line with its early November low.
Next resistance is at its 50- and 100-DMA. The U.K.’s FTSE 100 found strong support at its 50-DMA and retook its
10- and 21-DMA. The index closed 0.9% higher and is above all its key moving averages. - Germany, Portugal, and the Netherlands were shifted to a Rally Attempt from a Downtrend after the indices
recorded Day 3 of their rally attempt. - Denmark and Norway recorded Day 2 of their rally attempt.
- All 16 indices we track closed in the green. Three are in a Confirmed Uptrend, seven in an Uptrend Under Pressure,
two in a Downtrend, and four in a Rally Attempt. The average distribution day count stands at 4.5. - Actionable name in the European Focus List is Odfjell Drilling (ODDR.NO; ODL:NO).
Won Europe Today
Yesterday,
- European markets ended higher as optimism grew around a possible ceasefire in the Russia-Ukraine conflict and
expectations of a U.S. rate cut later this year. Ukraine indicated it is open to a broad peace outline, though key
issues still require top-level talks between the U.S. and Ukraine presidents. Investors also focused on delayed U.S.
economic data, which maintained overall hopes for a December Fed cut in place. - Among key movers on the Stoxx 600, shares of ABN Amro (ABN.NL; ABN:NA) rose 6.4% after the company
unveiled a major restructuring plan that includes cutting more than 5K jobs by 2028 to reduce costs. Meanwhile,
shares of Beazley (BEZ.GB; BEZ:LN) fell 9.2% after the company trimmed its premium growth forecast due to
tougher competition and softer demand in cyber insurance. - The Stoxx 600 booked a 0.9% gain and reclaimed its 50-DMA. Next resistance is at its 21-DMA (+0.5%). We
recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key
moving averages. - Among sectors, Travel & Leisure (+211bps), Retail (+173bps), Banks (+172bps), and Basic Resources (+153bps)
were the major gainers. Oil & Gas (-5bps) was the sole decliner. - Among major indices, France’s CAC tested resistance at its 50-DMA and closed 0.8% higher. Next resistance is at
its 21-DMA (+0.7%). Germany’s DAX gained 1% and tested resistance at its 200-DMA. Next resistance is at its 21-
DMA (+1.3%). The U.K.’s FTSE rose 0.8% and tested support at its declining 10-DMA. Next resistance is at its 21-
DMA (+0.9%). - Fifteen of the 16 markets we track closed in the green. Three markets are in a Confirmed Uptrend, seven in an
Uptrend Under Pressure, one in a Rally Attempt, and five in a Downtrend. - France was shifted to a Rally Attempt from a Downtrend. Ireland was shifted to a Confirmed Uptrend from an
Uptrend Under Pressure after the index reclaimed its previous rally high. - All 13 European Focus List names are trading above their 200-DMA, while 11 names are trading above their 50-
DMA. - Actionable names in the Focus List include Alk-Abello B (ALK.DK; ALKB:DC), Siemens Energy (ENRX.DE;
ENR:GR), and Odfjell Drilling (ODDR.NO; ODL:NO).
Won Global View
The U.S. market shifted to a Rally Attempt from a Downtrend. The S&P 500 and Nasdaq were up 91bps and 67bps, respectively, on
lower d/d volume. Both indices held above last Thursday’s lows for the third consecutive session, thus opening the window for a followthrough day (+1.7% on higher d/d volume). Indices have retaken both their 21-DMA (6,715/22,898) and 50-DMA (6,716/22,906), which will now act as support.
Won Global View
The U.S. market remains in a Downtrend. Yesterday, the S&P 500 gained 155bps on higher d/d volume, while the Nasdaq advanced
269bps on lower d/d volume. Both indices are testing resistance at their 50-DMA (6,713/22,892), with support at their 100-DMA
(6,552/22,080). A follow-through day (≥+1.7% on higher d/d volume on either index or both) can occur on Wednesday at the earliest.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the full report. Key points from it include:
- The Stoxx 600 fell ~2.3% last week, breaking below both its 21- and 50-DMA, and is now testing support at the 100-
DMA. The index was shifted to an Uptrend Under Pressure and now sits ~4% below its 52-week high, with seven
distribution days. Immediate support is at the 100-DMA (-0.4%), followed by the 200-DMA (-2.5%). To remain
constructive, the index must hold the 100-DMA without further clustering of distribution days. - Several European markets weakened. France, Germany, Norway, Portugal, and the Netherlands were shifted to a
Downtrend, while nine other indices, including the Stoxx 600, the U.K., and Italy, were moved to an Uptrend Under
Pressure. Of the 16 indices tracked, only Switzerland and Austria remain in a Confirmed Uptrend. The average
distribution day count increased to 4.3, indicating broader selling pressure. - All sectors fell, except defensive Health Care (+0.9%) and Consumer Staple (+0.6%). Technology (-3.3%) and
Capital Equipment (-3.6%) lagged the most. Rotation continues toward defensives, while Technology and Capital
Equipment show rapidly weakening momentum. - Breadth continued to weaken, and our scorecards show very few actionable ideas this week. While we remain
cautious in adding risk, we note that the index may attempt a short-term bounce from the 100-DMA, as the 12-week
new high/new low ratio indicates an oversold condition. However, this is a tactical setup and is unlikely to reverse
the ongoing rotation toward defensives. If no new leadership emerges, it is better to trim exposure and take profits
because we see no reason to add risk into a bounce.
Won Global View
The U.S. market remains in a Downtrend. On Friday, the S&P 500 advanced 98bps on higher d/d volume, while the Nasdaq gained
88bps on lower d/d volume. Indices are trading below their 50-DMA (6,711/22,881) for the first time in seven months. Support is now at the
100-DMA (6,548/22,057). A follow-through day (≥+1.7% on higher d/d volume on either index or both) can occur on Wednesday at the
earliest.
