The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq were up ~110–145bps on lower volume yesterday. The S&P 500
rebounded from 200-DMA support (5,728), while the Nasdaq closed above its 200-DMA (18,385). Indices have next support near
July/August highs (5,670/18,018) after their 200-DMA support. Immediate resistance is at their declining 10-DMA (5,914/18,863), 1–2%
above current levels.
Author: Deepashree MC
Won Europe Today
Yesterday,
- European stocks pulled back from record highs, following a global selloff as new U.S. tariffs on Canada, Mexico, and China took effect, raising fears of an economic slowdown and potential levies on Europe. China retaliated with fresh tariffs, hitting luxury stocks, which fell 2–4%. Meanwhile, the U.S. decision to pause military aid to Ukraine heightened expectations of increased European defense spending, adding to market uncertainty.
- Among key movers on the Stoxx 600, shares of Hermes (RMS.FR; RMS:FP), Kering (KER.FR; KER:FP), and LVMH (LVMH.FR; MC:FP) fell 2–4% after China imposed retaliatory tariffs of 10–15% following fresh U.S. duties. Meanwhile, shares of Thales (CSF.FR; HO:FP) rose 2.5%, led by better-than-expected 2024 earnings.
- The Stoxx 600 was testing support at its 21-DMA after it declined 2.1%on above average volume, marking its biggest single-day fall since August 2024. Next support is at its 50-DMA (-3.3%). 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. Automobile & Parts (-545bps), Oil & Gas (-411bps), Travel & Leisure (-392bps), and Banks (-375bps) were the top losers. Food & Beverages (+120bps) and Utility (+10bps) were the sole gainers.
- Among major indices, France’s CAC 40 declined 1.9% and breached its short-term moving averages on higher volume. Next support is at its 50-DMA (-3%). Germany’s DAX 30 pulled back 3.5% from its all-time high and breached its 10-DMA. It is now testing support at its 21-DMA and has next support at its 50-DMA. The U.K.’s FTSE 100 recorded a loss after five consecutive sessions of gains and closed 1.4% lower. Immediate support is at its short-term moving averages.
- All markets we track closed in the red. Eight are in a Confirmed Uptrend, seven in an Uptrend Under Pressure, and one in a Rally Attempt.
- France was shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the index recorded its fifth distribution day and breached its 21-DMA.
- The Stoxx 600 was shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the index breached its 21-DMA.
- Finland was shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the index recorded its fifth distribution day and breached its 21-DMA.
- Sweden was shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the index recorded its sixth distribution day and breached its 21-DMA.
- Italy was shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the index recorded its third distribution day and breached its 21-DMA.
- Norway recorded its seventh distribution day, while Germany and the Netherlands recorded their fifth distribution day. Denmark and Switzerland recorded their fourth distribution day. The average distribution day stood at 4.46.
- Of the 27 European Focus List names, 26 ideas are trading above their 200-DMA, while 21 ideas are trading above their 50-DMA.
- We removed Vimian Group (VIMG.SE; VIMIAN:SS) from our European Focus List after the stock broke below its 200-DMA. The stock is trending lower, with no reasonable support nearby.
- We removed Wise A (WISE.GB; WISE:LN) from our European Focus List as the stock breached support at the 50-DMA (GBX 1,064) and the bottom of its stage-one consolidation base (GBX 955).
- We removed EQT (EQT.SE; EQT:SS) from our European Focus List as the stock declined ~6% and closed below its 200-DMA (SEK 329.7).The stock had a failed breakout and is trading more than 15% off highs.
- Actionable names in the Focus List include Moncler (MONC.IT; MONC:IM), Talanx Aktgsf (TLXX.DE; TLX:GR), Technogym (TGYM.IT; TGYM:IM), and Adidas (ADSX.DE; ADS:GR).
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq declined 122bps and 35bps, respectively, on above average
volume. The S&P 500 closed just above the support near the low of the current consolidation (5,773) and has next support at its rising
200-DMA (5,725). The Nasdaq is below its 200-DMA (18,376) and has next level of support near August highs of 18,018.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- Most European indices have pulled back to their short-term moving averages. The U.K., Ireland, and Spain remain at their 52-week highs, while others are 1–3% below. Denmark, down 27% from its peak, has rebounded above the 50-DMA. Sector performance was mixed. Utility (+3.0%), Consumer Staple (+2.6%), and Financial (+2.5%) led the gains, while Technology lagged (-2.5%).
- On the rotation graph, Financial and Capital Equipment remained strong, while Consumer Cyclical weakened despite staying in the leading quadrant. Utility, Health Care, and Technology showed slight improvement, Transportation gained momentum, and Energy, Basic Material, and Retail declined.
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq had downside reversals yesterday, declining 175–265bps on lower
volume. The S&P 500 closed below its 100-DMA (5,953) and has immediate support near the low of the current consolidation (5,773),
followed by its rising 200-DMA (5,723). The Nasdaq closed just below its 200-DMA (18,368) and is testing support near the September
2024 high of 18,327.The next level of support is near the August 2024 high of 18,018.
Won Europe Today
On Friday,
- European stocks closed flat but secured a tenth straight weekly gain, as investors weighed U.S. trade tariff risks and economic headwinds. Technology shares led the losses, with the Stoxx Technology index down 1.5%, pressured by the recent Nvidia selloff. Meanwhile, growth in Eurozone remained sluggish. However, improving inflation prospects reinforced expectations of a rate cut by the European central bank this week, a move that could shape monetary policy and market sentiment in the near term.
- Among key movers on the Stoxx 600, shares of Valeo (FR.FR; FR:FP) plunged 11.2% after management lowered its 2025 revenue guidance by more than 8%. Meanwhile, shares of the Italian payments firm Nexi (NEXI.IT; NEXI:IM) surged 9% afterthe company reported a 7% y/y rise in annual core profit for 2024.
- The Stoxx 600 closed flat and continued to trade above all its key moving averages, with immediate 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, Utility (+77bps), Automobiles & Parts (+56bps), and Chemicals (+54bps) were the top gainers, while Technology (-145bps), Basic Resources (-66bps), and Oil & Gas (-45bps) lagged the most.
- Among major indices, France’s CAC 40 closed 0.1% higher. It was testing resistance at its 10-DMA, with immediate support at its 21-DMA (-0.6%).Germany’s DAX 30 closed the session 0.2% lower and tested support at its 21-DMA. Next support is at its50-DMA. The U.K.’s FTSE 100 extended its positive momentum, supported by positive corporate earnings. The index closed 0.6% higher, at an all-time high.
- Eight of the 16 markets we track closed in the green. Twelve are in a Confirmed Uptrend, three in an Uptrend Under Pressure, and one in a Rally Attempt.
- Norway and Sweden recorded their sixth distribution day, while Germany and Austria recorded their fifth. Finland and the Netherlands recorded their fourth distribution day. The average distribution day count stood at 4.2.
- Of the 31 European Focus List names, 30 ideas are trading above their 200-DMA, while20 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include 3i Group (III.GB; III:LN), Games Workshop (GAW.GB; GAW:LN), Talanx Aktgsf (TLXX.DE; TLX:GR), Boss Hugo (BOSSX.DE; BOSS:GR), and Adidas (ADSX.DE; ADS:GR).
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq breached their 100-DMA (5,953; 19,239) last week before
bouncing on Friday. The S&P 500 is trading near its 100-DMA. The next level of support is the low of its current consolidation (5,773),
followed by the rising 200-DMA (5,720). The Nasdaq is currently testing 200-DMA (18,358) support.
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 Wolters Kluwer (WSG.NL;
WKL:NA).
Won Global View
The U.S. market was shifted to a Downtrend. The S&P 500 and Nasdaq declined 1.6% and 2.8%, respectively, on higher d/d volume.
The S&P 500 has support around 5,773, followed by its 200-DMA (5,716). The Nasdaq has support at its 200-DMA (18,346).
Won Europe Today
Yesterday,
- European markets surged to a record high, driven by strong corporate earnings across multiple sectors. Investors also evaluated the implications of a key mineral agreement between the U.S. and Ukraine. Under the deal, Ukraine would allocate a portion of its mineral revenue to a fund jointly managed with the U.S. The agreement is seen as a strategic move by Ukraine to secure stronger backing from the U.S., which aims for a swift resolution to the Russia-Ukraine conflict.
- Among significant movers on the Stoxx 600, shares of the Belgium-based brewery Anheuser- Busch (ABI.BE; ABI:BB) jumped almost 9% after the company reported stronger-than-expected operating profit in Q4.
- The Stoxx 600 was up 1% and was trading at an all-time high. It is above all its key moving averages and has immediate support at its 10-DMA (-0.8%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Most sectors traded in positive territory. Banks (+251bps), Travel and Leisure (+206bps), and Mining (+198bps) were the top gainers. Telecommunications (-83bps) and Health Care (-39bps) were the only laggards.
- Among major indices, France’s CAC 40 bounced off its 21-DMA and closed 1.1% higher, rebounding from losses incurred in couple of its previous sessions. The index retook its 10-DMAon higher volume and traded above all its key support levels. Germany’s DAX 30 reclaimed its 10-DMA and ended the session 1.7% higher. The U.K.’s FTSE 100 retook its 10- and 21-DMA, closing 0.7% higher. The index was trading above its key support levels.
- All the 16 indices we track closed in the green, except Denmark. 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 3.5.
- Of the 31 European Focus List names, all the ideas are trading above their 200-DMA, while 24 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Moncler (MONC.IT; MONC:IM), GTT (GTT.FR; GTT:FP), Games Workshop (GAW.GB; GAW:LN), Talanx Aktgsf (TLXX.DE; TLX:GR), Boss Hugo (BOSSX.DE; BOSS:GR), Adidas (ADSX.DE; ADS:GR), and Relx (REL.GB; REL:LN).
