The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 3.9% and 5.3% last week after declining for four
consecutive weeks. Each index staged a follow-through day after posting strong weekly gains. The S&P 500 has regained its 50-DMA
(5,464) and is testing resistance along ~5,566. The Nasdaq is slightly above its 50-DMA (17,585) and attempting to settle above this key
moving average. No distribution days on either index.
Author: Deepashree MC
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 Norsk Hydro (NHY.NO; NHY:NO), Rexel (RXL.FR; RXL:FP), Beiersdorf (BEIX.DE; BEI:GR), Julius Baer Gruppe (BAER.CH; BAER:SW), and A P Moller
Maersk B (DSB.DK; MAERSKB:DC).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pushed higher for the sixth straight session, gaining 161bps and 234bps, respectively. Indices closed above their 50-DMA (5,460/17,576), which will now serve as near-term support. Immediate resistance is at their August 1 highs (5,566/17,792).
Wet Europe Today
Yesterday,
- European markets had a positive session, driven by strong gains in the Travel and Leisure and Financial Services sectors. Investors were comforted with increased chances of rate cuts by the Fed following the release of the U.S. inflation data.
- Among significant moves, shares of Flutter Entertainment (FLTR.GB; FLTR:LN), the world’s largest betting platform, rose more than 10% after the company raised its full-year guidance.
- The Stoxx 600 gained 49bps on higher volume, inching closer to resistance at its 21-DMA (505.6; +0.3%). 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, Travel and Leisure (+302bps), Automobiles (+153bps), and Financial Services (+134bps) gained the most, while Mining (-112bps) and Utility (-50bps) lagged.
- Among major indices, France’s CAC 40 reclaimed its 10-DMA. The index closed 79bps higher and extended its gains for a second session. Next resistance is at its declining 21-DMA (+0.8%). Germany’s DAX 30 closed 38bps higher, with resistance at its 21-DMA (+0.9%). The U.K.’s FTSE 100 advanced for the fourth straight session. Near-term resistance is at its recent August 1 highs. The index traded above all its key moving averages.
- Thirteen of the 16 indices we track closed in the green. One market (Denmark) is 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), and Relx (REL.GB; REL:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 was up 38bps and continues to move higher. It is now testing 50-DMA
resistance (5,455). The next level of resistance would be the August 1 high of 5,566. The Nasdaq was up 3bps yesterday and remained
above its 21-DMA support (17,136).The next level of resistance is at the 50-DMA (17,561).
Won Europe Today
Yesterday,
- European markets had a positive trading session as investors digested the latest economic data. The U.K.’s unemployment rate declined, countering predictions of an increase, while its PPI data indicated a smaller-than-expected rise in wholesale prices in July. Looking ahead, key economic releases, including the U.K.’s post-rate cut inflation data and the U.S. inflation report, are set to influence market sentiment later this week.
- The Stoxx 600 advanced 52bps, hitting a two-week high and reclaiming the 500-point mark. The index retook its 10-DMA, with next resistance at its 21-DMA (506;+0.8%). 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, Health Care (+123bps), Utility (+94bps), and Financial Services (+87bps) gained the most, while Mining (-30bps) and Oil and Gas (-11bps) lagged.
- Among major indices, France’s CAC 40 continued to test stiff resistance from its 10-DMA. The index closed 35bps higher, marginally above its 10-DMA. Next resistance is at its 21-DMA (+1.8%). Germany’s DAX 30 gained 45bps and retook its 10-DMA on higher volume. The U.K.’s FTSE 100 continued its strong momentum for a third straight session, closing 30bps higher. The index tested support at its consolidating 21- and 50-DMA.
- Denmark was shifted to a Confirmed Uptrend from a Rally Attempt as the index recorded a follow-through day.
- All the 16 indices we track closed in the green, except Austria. One market (Denmark) is 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), Siegfried ‘R’ (SFZN.CH; SFZN:SW), and Relx (REL.GB; REL:LN).
Won Global View
The U.S. market has been upgraded to a Confirmed Uptrend. The Nasdaq gained 2.42% on higher d/d volume and had a day 6 follow through day. The S&P 500 gained 1.69% on higher d/d volume. Indices cleared the 21-DMA (5,399/17,130), which will now serve as near term support, while immediate resistance will be at their 50-DMA (5,451/17,554).
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 rebounded from a sharp downturn, gaining 60bps through the week amid uncertain global market conditions. The index reclaimed its 200-DMA. It expects near-term resistance at its declining 10-DMA.
- Most markets remain choppy and could run into resistance from their declining short- and mid-term moving averages. We recommend that investors remain patient and be ready to allocate capital toward defensive stocks.
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 closed flat, while the Nasdaq closed ~20bps higher. Indices have immediate
resistance at their 21-DMA (5,395/17,125), followed by the 50-DMA (5,448/17,545), 2–5% above current levels. We will shift the market to
a Confirmed Uptrend if a follow-through day occurs (+1.7% or more on higher d/d volume without recent lows being undercut).
Won Europe Today
On Friday,
- European markets had a positive session, boosted by the rise in health care stocks for a fourth straight session. Global markets ended on a high note after a shaky start in the week, easing selloff concerns.
- Among significant stock moves, shares of Lotus Bakeries (LBAK.BE; LOTB:BB), the Belgian snack maker, were up more than 7% after the company reported strong revenue growth in H1 FY24.
- The Stoxx 600 recorded a fourth straight day of gains, advancing 57bps. Immediate resistance is at its declining 10-DMA (502; +0.5%), followed by its 21-DMA (508.7; +1.9%). 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, Health Care (+171bps), Travel and Leisure (+150bps), and Retail (+117bps) led the gains, while Automobile (-14bps) and Technology (-11bps) lagged.
- Among major indices, France’s CAC 40 rose 31bps and reclaimed its 10-DMA. Near-term resistance is expected at this level. Germany’s DAX 30 inched closer to resistance at its 10-DMA (17,869.6; +0.8%). Support is at its 200-DMA. The U.K.’s FTSE 100 climbed 28bps after finding strong support at its 100-DMA. It faced resistance at its merging 10- and 21-DMA.
- France, Sweden, Switzerland, Italy, Portugal, and Spain were shifted to a Rally Attempt from a Downtrend.
- All the 16 indices we track closed in the green, except Portugal and the Netherlands. All the markets are in a Rally Attempt.
- Actionable names in the Focus List include Biotage (BIOT.SE; BIOT:SS), Rolls-Royce Holdings (RR.GB; RR/:LN), Siegfried ‘R’ (SFZN.CH; SFZN:SW), Lonza Group (LONN.CH; LONN:SW), and Relx (REL.GB; REL:LN).
