The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were down 2.0% and 1.8%, respectively, last week.
The S&P 500 breached its 21-DMA and then its 50-DMA for the first time in three months. It then retook and closed slightly above the 50-
DMA (5,927). Next support would be around 3% lower at the 100-DMA (5,752). The Nasdaq breached its 21-DMA but held well above the
50-DMA. It retook and closed above the 21-DMA and 3% above the 50-DMA (19,040). The distribution day count on each index stands at
three and four, after one expired on the S&P 500 after Friday’s close.
Author: Deepashree MC
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were down 9bps and 10bps, respectively. The S&P
500 failed to retake its 50-DMA (5,924) and has next support at the 100-DMA (5,748; -3%). The Nasdaq found resistance at its 21-DMA
(19,550) and has next support at the rising 50-DMA (19,016; -2%). The distribution day count on each index stands at four, with one
expiring on the S&P 500 after today’s close.
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 Akzo Nobel (AKZA.NL; AKZA:NA)
and Exor NV (EXOO.NL; EXO:NA).
Won Europe Today
Yesterday,
- European markets edged slightly higher, buoyed by strong gains in technology stocks, while Wall Street faced declines following the U.S. Federal Reserve’s widely anticipated 25bps rate cut. The Fed lowered its target interest rate to 4.25–4.50%, signaling only two potential cuts in FY25, down from earlier expectations of four. Investors are now turning their attention to upcoming monetary policy decisions from the Bank of England and Norway’s central bank, both slated for later today.
- Among other key economic releases, Eurozone’s inflation came in at 2.2% in November, slightly lower than preliminary estimates of 2.3%.
- Among significant movers on the Stoxx 600, shares of the French automaker Renault (RENU.FR; RNO:FP) rose more than 5%, following news of a possible merger between its largest shareholder Nissan (NR@N.JP; 7201:JP) and Honda (HO@N.JP; 7267:JP).
- The Stoxx 600 closed 0.1% higher, rebounding from its four-day losing streak. The index tested support at its converging 50- and 100-DMA. Near-term resistance is 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, Technology (+108bps) and Banks (+87bps) led the gains, while Food and Beverage (-100bps) and Mining (-93bps) fell the most.
- Among major indices, France’s CAC 40 closed 0.2% higher, retaking its 50-DMA and inching closer to immediate resistance at its 10-DMA. Germany’s DAX 30 closed flat, with near-term resistance at its 10-DMA. The U.K.’s FTSE 100 closed flat. The index faced resistance at its 50-DMA. Support is at its 200-DMA.
- Eleven of the 16 indices we track closed in the green. One is in a Confirmed Uptrend, two in an Uptrend Under Pressure, 11 in a Rally Attempt, and two in a Downtrend. The average distribution day count stood at four.
- Of the 30 European Focus List names, 27 ideas are trading above their 200-DMA, while 19 ideas are trading above their 50-DMA.
- Pandora (PND.DK; PNDORA:DC) was added to the European Focus List after the stock had a bullish base-on-base price action. It is trading near its actionable range after breaking out of a stage-three cup base.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Relx (REL.GB; REL:LN), Schneider Electric (QT@F.FR; SU:FP), and Adyen (ADYE.NL; ADYEN:NA).
Won Global View
The U.S. market has been shifted to an Uptrend Under Pressure. The S&P 500 declined 295bps on higher volume, registering its
fourth distribution day. It breached support at its 21- and 50-DMA, with the next level of support at its 100-DMA (5,743; -2%). The Nasdaq
was down 356bps on higher volume, registering its fourth distribution day. It has breached the 21-DMA and has next support at the rising
50-DMA (18,992; -2%). The distribution day count on each index is four, as one expired on the Nasdaq yesterday.
Won Europe Today
Yesterday,
- European markets extended their losses as investors remained cautious ahead of major central banks’ decisions scheduled later this week. The Energy sector was dragged down by a decline in crude oil prices amid weak economic data from China, raising demand concerns. Meanwhile, money markets increasingly anticipate a 25bps rate cut by the U.S. Federal Reserve in its upcoming meeting.
- The Stoxx 600 fell to a two-week low and tested support at its 50- and 100-DMA. Next support is at its 21-DMA, followed by its 200-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Most sectors closed in the red. Banks (-156bps) and Energy (-133bps) led the losses. Technology (+60bps) and Health Care (+12bps) were the sole outliers.
- Among major indices, France’s CAC 40 gained 0.1%, catching up to its converging 10- and 50-DMA. Germany’s DAX 30 declined for a third straight session, closing 0.3% lower. It faced resistance at its 10-DMA, with next level of support at its 21-DMA (-1.9%). The U.K.’s FTSE 100 fell 0.8%, breaching its 50- and 100-DMA intraday. It has near-term support at its 200-DMA.
- Germany recorded its second distribution day, while Denmark and Spain logged in their fourth and sixth, respectively.
- Portugal was shifted to a Downtrend from a Rally Attempt as the index made a new low.
- Fourteen of the 16 indices we track closed in the red. One is in a Confirmed Uptrend, two in an Uptrend Under Pressure, 11 in a Rally Attempt, and two in a Downtrend. The average distribution day count stood at four.
- Of the 29 European Focus List names, 27 ideas are trading above their 200-DMA, while 19 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Relx (REL.GB; REL:LN), Schneider Electric (QT@F.FR; SU:FP), and Adyen (ADYE.NL; ADYEN:NA).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were down 39bps and 32bps, respectively. The S&P 500
broke below its 10-DMA, with next support at the 21-DMA (6,020), while the Nasdaq continues to trade 1% above its 10-DMA support
(19,859). Indices added one distribution day each yesterday. The distribution day count on the S&P 500 remains at three as one expired,
while the count on the Nasdaq increased to four, with one expiring after the close today.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 was up 38bps and rebounded from its 10-DMA support (6,053). Nasdaq was up 124bps on higher than average volume and registered a new all-time high. It also has support at the rising 10-DMA (19,804). The distribution day count stands at three on the S&P 500 and Nasdaq with one day expiring on each this week.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 declined last week, losing its three-week momentum due to weaker-than-expected Eurozone
economic data, including a fall in the U.K.’s GDP in October and concerning inflation figures from France and
Spain. - On the rotation charts, momentum in Consumer Cyclical has been strong, led by travel and hospitality stocks,
while Health Care remains in the worst quadrant. Mining stocks lagged the most.
Won Europe Today
On Friday,
- European markets closed lower, capping off a volatile week amid China’s stimulus measures, inflation data from
the U.S. and Eurozone, and the European central bank’s fourth consecutive rate cut. The Health Care sector was
under pressure, with shares of Novo Nordisk (NON.DK; NOVOB:DC) declining nearly 4% amid rising demand for
Eli Lilly’s (LLY) competing obesity treatments. - The Stoxx 600 extended its losses for a second session, hitting fresh weekly lows and snapping a three-week gain.
The index breached its 10-DMA. Near-term support is at its converging 50- and 100-DMA. We recommend a
selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages. - Among sectors, Automobiles (+47bps) and Food and Beverage (+25bps) led the gains, while Mining (-223bps) and
Health Care (-178bps) lagged the most. - Among major indices, France’s CAC 40 closed 0.1% lower. The index was facing resistance at its 100-DMA. Next
support is at its 50-DMA. Germany’s DAX 30 declined 0.1%. The index has near-term support at its 10-DMA
(-0.6%). The U.K.’s FTSE 100 was down 0.1%. It tested resistance at its 10-DMA. Next level of support is at its 21-
DMA (-0.5%). - Denmark recorded its third distribution day and was shifted to an Uptrend Under Pressure from a Confirmed
Uptrend as the index breached its 50-DMA. - Spain was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 21-DMA.
- Fourteen of the 16 indices we track closed in the red. One is in a Confirmed Uptrend, three are in an Uptrend Under
Pressure, and 12 are in a Rally Attempt. The average distribution day count stood at 3.33. - Of the 30 European Focus List names, 28 ideas are trading above their 200-DMA, while 19 ideas are trading above
their 50-DMA. - Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Relx (REL.GB; REL:LN), Schneider
Electric (QT@F.FR; SU:FP), and Adyen (ADYE.NL; ADYEN:NA).
