The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were relatively flat and closed 1bps and 26bps
higher, respectively, on lower d/d volume. The S&P 500 is testing support at its 100-DMA (5,949). The Nasdaq is testing resistance at its
100-DMA (19,223). The distribution day count remains elevated at seven on each index.
Author: Deepashree MC
Won Europe Today
Yesterday,
- European markets closed higher as strength in Banking and Health Care stocks offset losses in the Technology sector. Shares of the U.K. defense giant BAE Systems (BA.GB; BA/:LN) surged 4.7% after Prime Minister Keir Starmer announced a major defense spending boost of £13.4B per year from 2027, the largest sustained increase since the Cold War. Meanwhile, Asia-Pacific stocks declined following weaker-than-expected U.S. consumer confidence data.
- The Stoxx 600 closed 0.1% higher on higher volume and continued to trade along its 10-DMA.We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Banks (+150bps) and Telecommunications (+126bps) were the top performers, while Mining (-186bps) and Technology (-146bps) lagged the most.
- Among major indices, France’s CAC 40 extended its losses for a second consecutive session, closing 0.5% lower. The index was testing support at its 21-DMA. Next level of support is at its early February lows. Germany’s DAX 30 closed flat following the country’s federal election result. The index faced resistance at its 10-DMA. The U.K.’s FTSE 100 ended 0.1% higher, with near-term resistance at its 21-DMA. Next resistance is at its 10-DMA.
- The Netherlands, France, and Norway recorded their third, fourth, and fifth distribution day, respectively.
- Norway and the Netherlands were shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the indices breached their respective 21-DMA.
- Eleven of the 16 indices we track closed in the green. Twelve indices are in a Confirmed Uptrend, three in an Uptrend Under Pressure, and one in a Rally Attempt. The average distribution day count stood at 3.6.
- Of the 31 European Focus List names, all the ideas are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.
- Vitrolife (VITR.SE; VITR:SS) was removed from the European Focus List as the stock failed to regain its 200-DMA and is trending lower with no reasonable support nearby.
- Actionable names in the Focus List include Moncler (MONC.IT; MONC:IM), Ferrari (RACE.IT; RACE:IM), GTT (GTT.FR; GTT:FP), Pandora (PND.DK; PNDORA:DC), Talanx Aktgsf (TLXX.DE; TLX:GR), Lonza Group (LONN.CH; LONN:SW), Boss Hugo (BOSSX.DE; BOSS:GR), Adidas (ADSX.DE; ADS:GR), and Rolls Royce Holdings (RR.GB; RR/:LN).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined 47bps and 135bps on higher d/d volume,
respectively, and each recorded a distribution day. The S&P 500 is testing support at its 100-DMA (5,946). The Nasdaq broke below its
100-DMA support, with next support ~18,780. The distribution day count increased to seven on each index.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European markets marked its ninth consecutive week of gains in the previous week, with the Stoxx 600 trading at a new all-time high. It is extended from its near-term moving averages.
- Banking, Financial Services, and Telecommunication remained the leading sectors, making new highs last week. Health Care led the sectoral gains and is now testing its 200-DMA. Among the laggards, Retail and Travel & Leisure declined 3% each last week.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined 50bps and 121bps on lower d/d volume,
respectively, and escaped recording a distribution day. The S&P 500 broke below its 50-DMA, with next support at its 100-DMA (5,944).
The Nasdaq reversed from its 50-DMA resistance, with next support at the 100-DMA (19,203). The distribution day count stands at six on
each index.
Won Europe Today
On Friday,
- European markets traded higher to end the week with a marginal gain of 0.2% after being slightly under pressure in few of the previous sessions. Health Care sector was one of the strong performers after the U.S. FDA removed Novo Nordisk’s weight-loss and diabetes drugs from its shortage list. Investors now focus on the upcoming election in Germany, which could either bring a conservative-led government with economic stimulus plans or lead to a prolonged coalition deadlock.
- Among significant movers on the Stoxx 600, shares of the Irish company Kingspan (KRX.IE; KSP:ID) rose more than 13% after the company reported upbeat 2024 results. On the flip side, shares of the Swedish medical equipment maker Elekta B (ELKB.SE; EKTAB:SS) fell almost 9% after the company trimmed its annual revenue and earnings forecast.
- The Stoxx 600 ended 0.5% higher, paring the losses from its previous two sessions. The index tested support at its 10-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Food and Beverage (+238bps), Chemicals (+194bps), and Health Care (+150bps) were the top performers, while Energy (-98bps) and Retail (-49bps) led the losses.
- Among major indices, France’s CAC 40 closed 0.4% higher and was finding strong support at its 10-DMA. Next level of support is at its 21-DMA (-1.3%). Germany’s DAX 30 extended its losses for a third consecutive session as investors remain cautious ahead of the country’s snap elections. The index recently breached its 10-DMA, with support at its 21-DMA (-1.4%). The U.K.’s FTSE 100 closed flat. The index has partially lost momentum, closing in the red in the past few sessions. Resistance is at its 21-DMA.
- Germany recorded its fourth distribution day.
- Twelve of the 16 indices we track closed in the green. Thirteen indices are in a Confirmed Uptrend, two in an Uptrend Under Pressure, and one in a Rally Attempt. The average distribution day count stood at 3.5.
- Of the 31 European Focus List names, 24 ideas are trading above their 200-DMA, while 30 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Flutter Entertainment (FLTR.GB; FLTR:LN), Lonza Group (LONN.CH; LONN:SW), Boss Hugo (BOSSX.DE; BOSS:GR), Adidas (ADSX.DE; ADS:GR), and Rolls Royce Holdings (RR.GB; RR/:LN).
Won Global View
The U.S. market was shifted to an Uptrend Under Pressure. The S&P 500 declined 1.7% last week and is 2% off highs, while the
Nasdaq was down 2.2% and is 3% off highs. The S&P 500 broke below its 21-DMA but is still slightly above the 50-DMA (6,010). The
Nasdaq breached 21- and 50-DMA, leaving next support at the 100-DMA (19,192). The distribution day count stands at six apiece after
each index picked up one on Friday.
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 Enagas (ENAG.ES; ENG:SM) and Atrium Ljungberg (ATRJ.SE; ATRLJB:SS).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined 43bps on higher daily volume and registered a distribution
day. The Nasdaq was down 47bps and continues to trade in a range, 1% off highs. Indices have immediate support at the 21-DMA (6,066;
19,773), followed by the 50-DMA (6,011; 19,690). The distribution day count stands at five on each index.
Won Europe Today
Yesterday,
- European stocks closed lower, with the Stoxx 600 posting its biggest decline in the year, amid rising fears of a trade dispute between the U.S. and the EU following the latest U.S. tariff threats. Adding to market jitters, Germany’s bond yields hit a two-week high amid expectations of increased government spending on defense. On the economic front, the U.K.’s inflation rose 3% y/y in January, above estimates of a 2.8% y/y rise.
- Among key movers on the Stoxx 600, shares of Nexans (NXS.FR; NEX:FP) jumped 10% after the French cable maker reported strong revenue and earnings for H2 FY24, while shares of Philips (PHIL.NL; PHIA:GK) fell 11% as the company reported lower-than-expected Q4 results.
- The Stoxx 600 was testing support at the 10-DMA after a 0.9% pullback from its all-time high, with next support at its 21-DMA (-1.7%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Overall sector performance was negative. Basic Resources (-239bps), Retail (-234bps), and Chemicals (-234bps) were the top losers, while Utility (+75bps) was the only outlier.
- Among major indices, France’s CAC 40 pulled back 1.2% and tested support at its 10-DMA. Next support is at its 21-DMA (-1.5%). Germany’s DAX 30 declined 1.8% from its all-time high and has immediate support at its 10-DMA (-0.6%). The U.K.’s FTSE 100 closed 0.6% lower and breached support along its 10-DMA. Immediate support is at its 21-DMA (-0.6%).
- Fourteen of the 16 markets we track closed in the red. Fourteen are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and one in a Rally Attempt.
- The U.K. and Sweden recorded their fifth distribution day, while Italy registered its fourth. France, Germany, Ireland, and Switzerland recorded their third distribution day. Finland and Belgium registered their second distribution day, while the Netherlands recorded its first. The average distribution day count stood at 3.06.
- Of the 31 European Focus List names, 30 ideas are trading above their 200-DMA, while26 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Moncler (MONC.IT; MONC:IM), Vimian Group (VIMG.SE; VIMIAN:SS), Ferrari (RACE.IT; RACE:IM), Flutter Entertainment (FLTR.GB; FLTR:LN), and Adidas (Xet) (ADSX.DE; ADS:GR).
