The U.S. market remains in a Confirmed Uptrend. The S&P 500 continued a V-shaped recovery last week and closed 1.5% higher for
the week, ending just 1% off all-time highs (5,670). Support is at the 10-DMA (5,544) and then the 21-DMA (5,497). The Nasdaq rose 1.4%
for the week, retaking the 50-DMA (17,639), which may now act as support. It remains about 4% off all-time highs (18,671). The
distribution day count is at zero and one, respectively.
Author: Deepashree MC
Wet Europe Today
We released our Weekly Global Laggards Report today. Click here to access the reports 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 Carlsberg B (CAB.DK; CARLB:DC), Lvmh (LVMH.FR; MC:FP), Skanska B (SKBF.SE; SKAB:SS), Husqvarna B (HUSB.SE; HUSQB:SS), and Barry Callebaut (BARN.CH; BARN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined 0.9% on lower d/d volume, while the Nasdaq declined 1.7%
on higher d/d volume and added a distribution day. Indices are catching up with their moving averages, with immediate support along their
10-DMA (5,524/17,507), followed by the 21-DMA (5,483/17,403). The distribution day count is at zero and one, respectively.
Won Europe Today
Yesterday,
- European markets resumed their rally after a brief pause on Tuesday, driven by solid gains in the automobile sector. Markets were optimistic of a dovish tone in the Fed’s minutes. The U.S. labor department highlighted the weaknesses across the labor market, stating a much lesser job additions in March than initially reported.
- The Stoxx 600 continued to find support at its 100-DMA. The index closed 33bps higher, with resistance at its July 31 highs (+1%). European markets have rallied over the past two weeks, albeit on low volume. Market breadth remains low with rotation toward defensive areas. We recommend a selective approach to adding names on high-volume breakouts or decisive retake of their key moving averages.
- Among sectors, Automobiles (+139bps), Food and Beverage (+93bps), and Retail (+92bps) led the gains, while Telecommunications (-34bps) lagged the most.
- Among major indices, France’s CAC 40 gained 52bps, retaking its 50-DMA resistance on lower volume. Near-term resistance is expected at its July-end highs (7,585; +0.8%), followed by its 200-DMA. Germany’s DAX 30 was trading at its monthly highs. The index advanced 51bps. Immediate resistance is at its July 31 highs. The U.K.’s FTSE 100 closed 0.1% higher and found support at its 10-DMA.
- Eleven of the 16 indices we track closed in the green. Three markets are in a Confirmed Uptrend, while all the others are in a Rally Attempt. The average distribution day count stands at one.
- Actionable names in the Focus List include Biotage (BIOT.SE; BIOT:SS), Inditex (IND.ES; ITX:SM), Vitrolife (VITR.SE; VITR:SS), Lonza Group (LONN.CH; LONN:SW), Premier Foods (PFD.GB; PFD:LN), Rolls-Royce Holdings (RR.GB; RR/:LN), Ferrari (RACE.IT; RACE:IM), Nkt (NKT.DK; NKT:DC), Relx (REL.GB; REL:LN), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), Galderma Group (GALD.CH; GALD:SW), and Swissquote ‘R’ (SQN.CH; SQN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 42bps and 57bps, respectively. The S&P 500 is
above most of its resistance levels, with next resistance at an all-time high of 5,670. Indices have immediate support along their respective
50-DMA (5,479/17,628).
Won Europe Today
Yesterday,
- European markets had a negative session, ending their five-day winning streak, weighed down by major energy stocks. Investors digested domestic economic data while gearing up for the central bankers’ meeting in Jackson Hole this week. Germany’s PPI fell y/y in July, in line with estimates. Sweden’s central bank reduced its interest rates as per expectations and signaled possibilities of three more rate cuts in the year.
- The Stoxx 600 closed 45bps lower, almost in line with its 100-DMA. The index is expected to find some support at this level. Next support is at its 50-DMA (511.2; -0.2%). We recommend that investors trim positions in stocks that have breached their logical levels of support. Book profit in names that are breaching their 21- and 50-DMA on high volume.
- Most sectors closed in the red, led by Oil and Gas (-212bps), Banks (-118bps), and Food and Beverage (-92bps).
- Among major indices, France’s CAC 40 continued to face strong resistance at its 50-DMA (7,514.7; +0.3%). The index closed 22bps lower. Germany’s DAX 30 witnessed the first decline in more than a week, closing 30bps lower. Support is at its 100-DMA (-0.4%). The U.K.’s FTSE 100 was down 1%, closing near its 10-DMA support (-0.2%).
- All the 16 indices we track closed in the red. Three markets are in a Confirmed Uptrend, while all the others are in a Rally Attempt. With Denmark recording its first distribution day, the average distribution day count stood at one.
- Actionable names in the Focus List include Biotage (BIOT.SE; BIOT:SS), Inditex (IND.ES; ITX:SM), Vitrolife (VITR.SE; VITR:SS), Lonza Group (LONN.CH; LONN:SW), Premier Foods (PFD.GB; PFD:LN), Rolls-Royce Holdings (RR.GB; RR/:LN), Ferrari (RACE.IT; RACE:IM), Nkt (NKT.DK; NKT:DC), Relx (REL.GB; REL:LN), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), and Swissquote ‘R’ (SQN.CH; SQN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 20bps and 34bps, respectively, on lower d/d
volume, avoiding a distribution day. The S&P 500 is 1% off highs with support at its 10-DMA (5,489), while the Nasdaq has support at its
50-DMA (17,613) and is still 5% off highs. Yesterday, all sectors’ performance was mostly neg
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- Most European indices staged a rebound last week after posting heavy loss previously. Many markets have reclaimed their 50-DMA and are trading 1–5% below their 52-week highs.
- Sectors closed positively last week. Technology, Financial, Retail, and Consumer Cyclical outperformed. Health Care and Financial remain in the best quadrant, exhibiting positive short-term momentum, while Consumer Cyclical, Materials, and Energy showed negative short-term momentum.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq advanced 97bps and 139bps, respectively. The S&P 500
is 1% off highs with support at its 10-DMA (5,465), while the Nasdaq bounced off its 50-DMA level (17,599) on higher d/d volume and is
still 4% off highs. The 21-DMA (5,446/17,279) is a key level of support for both indices.
Won Europe Today
On Friday,
- European markets had a positive session, with several upbeat data releases strengthening investor sentiment. Resilient U.S. retail sales data erased recession concerns that prevailed earlier this month.
- The U.K. retail sales rebounded in July, in line with expectations, with increasing sales volume. The British estate agents witnessed an increase in demand from the buyers following the Bank of England’s rate cut decision in early August.
- The Stoxx 600 rallied 31bps, gaining for its fourth straight session. The index reclaimed its converging 50- and 100-DMA. It was trading above all its key moving averages. We recommend that investors trim positions in stocks that have breached their logical levels of support. Book profit in names that are breaching their 21- and 50-DMA on high volume.
- Among sectors, Retail (+104bps), Banks (+57bps), and Financial Services (+54bps) gained the most.
- Among major indices, France’s CAC 40 closed 35bps higher. The index reclaimed its 21-DMA, with next resistance at its 50-DMA (7,528.6; +1%). Germany’s DAX 30 retook its 50- and 100-DMA intraday and traded above all its key moving averages. The index closed 82bps higher. The U.K.’s FTSE 100 slipped 43bps after gaining for five straight sessions. Immediate support is at its 21-DMA (-1.2%).
- Italy was shifted to a Confirmed Uptrend from a Rally Attempt after recording a follow-through day.
- Nine of the 16 indices we track closed in the green. Three markets are in a Confirmed Uptrend, while all others are in a Rally Attempt.
- Actionable names in the Focus List include Biotage (BIOT.SE; BIOT:SS), Lonza Group (LONN.CH; LONN:SW), Premier Foods (PFD.GB; PFD:LN), Rolls-Royce Holdings (RR.GB; RR/:LN), Ferrari (RACE.IT; RACE:IM), Nkt (NKT.DK; NKT:DC), and Relx (REL.GB; REL:LN).
