The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were up 108bps and 158bps, respectively. After
three days of sharp decline, both indices staged an upside reversal and retook their 21-DMA (5,535/18,002). The distribution day count
stands at five and four, respectively, with one expiring on each index at the end of this week.
Author: Deepashree MC
Won Europe Today
On Friday,
- European markets closed the week in the red, capping five consecutive days of selloff as technology stocks slumped on a CrowdStrike update triggering a global Windows technical outage. Prices of commodity-linked shares also continued their decline. Technology was the worst-performing sector throughout the week, with a decline of almost 9%.
- The Stoxx 600 fell 0.8%, registering a 2% weekly selloff, its biggest fall this year. The index was shifted to a Downtrend from an Uptrend Under Pressure on a breach of its 100-DMA. Next support is at its June 17 lows (508; -0.4%). 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 Mining (-213bps), Travel and Leisure (-205bps), and Technology (-111bps).
- Among major indices, France’s CAC 40 lost 69bps on higher volume. The index breached its 10-DMA and traded below all its key moving averages. Near-term support is expected at its July 9 lows (7,484; -0.7%). Germany’s DAX 30 breached its 100-DMA on higher volume, posting its fifth-straight day of losses. Next support is at its July 2 lows (18,030.5; -0.7%). The U.K.’s FTSE 100 breached its converging 10- and 21-DMA, closing 60bps lower on higher volume. Next support is atits 100-DMA (8,079.6; -0.9%).
- The Netherlands registered its sixth distribution day. The average distribution day count currently stands at 4.25. Finland had a failed rally attempt as the index breached its Day 1 low and was shifted back to a Downtrend.
- All the 16 indices we track closed in the red, except Denmark, Norway, and Portugal. Two markets are in a Confirmed Uptrend, two in an Uptrend Under Pressure, nine in a Rally Attempt, and three in a Downtrend.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Relx (REL.GB; REL:LN), Technogym (TGYM.IT; TGYM:IM), H Lundbeck B (HLB.DK; HLUNB:DC), Rolls Royce Holdings (RR.GB; RR/:LN), Siegfried ‘R’ (SFZN.CH; SFZN:SW), Premium Foods (PFD.GB; PFD:LN), and Swissquote ‘R’ (SQN.CH; SQN:SW).
Won Global View
The U.S. market was shifted to an Uptrend Under Pressure. Last week, the S&P 500 and Nasdaq declined 1.9% and 3.6%, respectively, with each index closing below its 21-DMA (5,533, 18,002). The next level of support is the rising 50-DMA (5,410; 17,423), which is ~2% lower. The distribution day count stands at five and four, respectively, with one day expiring on each index at the end of this week.
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 Hermes International (RMS.FR; RMS:FP), Sicroelectronics (STM.IT; STMMI:IM), and Acciona (ANA.ES; ANA:SM).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 closed ~80bps lower and is just sitting above its 21-DMA (5,535), with
the next level of support at the 50-DMA (5,403). The Nasdaq declined 70bps yesterday and is trading below 10- and 21-DMA, with next
support at the 50-DMA (17,395). Indices declined on lower d/d volume and avoided distribution. The distribution day count remains at four
on both indices.
Won Europe Today
Yesterday,
- European markets closed negative for a third straight day, with chip stocks declining as investors remained cautious of potential trade tensions between the U.S. and China. Despite significant losses, the tech index is still up close to 13% for the year and among the best-performing European sectors. The U.K.’s annual inflation rate marginally missed forecasts and remained steady at 2% in June. Investors have shifted their focus toward the European Central Bank’s upcoming rate decision.
- The Stoxx 600 closed 0.5% lower on higher volume, breaching its 21-DMA. Immediate support is expected at its 100-DMA (511.9; -0.5%). We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.
- Among notable stock moves, shares of ASML Holding (ASML.NL; ASML:NA), the Dutchchip-making firm, slipped almost 11%, its largest single-day drop in four years, driven by tighter export restrictions to China from the U.S. government. Shares of Roche Holding (ROG.CH; ROG:SW), the Swiss drug maker, jumped 5.8% after yielding positive results for the early trial of its obesity drugs.
- Among sectors, Food and Beverage (+139bps), Chemical (+89bps), and Banks (+66bps) led the gains, while Technology (-440bps), Retail (-105bps), and Mining (-50bps) lagged.
- Among major indices, France’s CAC 40 posted its third consecutive day of losses on higher volume. Support remained at its recent July 10 lows (7,487.8; -1%). Germany’s DAX 30 declined 42bps resistance at its 21-DMA (18,347). The U.K.’s FTSE 100 recovered from its two-day losing streak, gaining 28bps. Next resistance is at its converging 10- and 21-DMA (+0.1%).
- The Netherlands and the Stoxx 600 recorded their seventh and eighth distribution day, respectively.
- Denmark was shifted to a Downtrend from an Uptrend Under Pressure and the Netherlands was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the indices breached their 100- and 50-DMA, respectively.
- Nine of the 16 indices we track closed in the red. Two markets are in a Confirmed Uptrend, three in an Uptrend Under Pressure, 10 in a Rally Attempt, and one (Denmark) in a Downtrend. The average distribution day count stood at 5.0.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Premier Foods (PFD.GB; PFD:LN), Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Technogym (TGYM.IT; TGYM:IM), H Lundbeck B (HLB.DK; HLUNB:DC), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), Rolls Royce Holdings (RR.GB; RR/:LN), and Swissquote ‘R’ (SQN.CH; SQN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 closed ~1.4% lower and is just sitting on its 10-DMA, with the next level
of support at the 21-DMA (5,535). The Nasdaq declined 2.8% yesterday and breached its 10- and 21-DMA, with the next level of support
at the 50-DMA (17,634). Indices declined on higher d/d volume, recording a distribution day each. The count now stands at four on both
indices.
Won Europe Today
Yesterday,
- European markets marked a weak session, as commodity-linked stocks and luxury brands declined. The European Central Bank will hold its policy meeting later this week, in which it is expected to hold interest rates steady. Investors will focus on remarks from policymakers to ascertain the timing of future rate cuts.
- The Stoxx 600 was down 0.3%. It breached its 50- and 10-DMA and closed in line with its 21-DMA (516.09; -0.2%). Next support is at its 100-DMA (511.7; -1%). We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.
- All sectors closed in the red, led by Automobiles (-485bps) and Banks (-420bps).
- Among major indices, France’s CAC 40 closed 69bps lower, trading below all its key support levels. Next support is at its July 10 lows (7,487; -1%). Germany’s DAX 30 breached its 10- and 50-DMA support levelson higher volume. Near-term support is at its 21-DMA.The U.K.’s FTSE 100 declined 22bps on lower volume.
- The Netherlands and the Stoxx 600 recorded their sixth and seventh distribution day, respectively.
- Twelve of the 16 indices we track closed in the red. Three markets are in a Confirmed Uptrend, three in an Uptrend Under Pressure, and 10 in a Rally Attempt. The average distribution day count stood at 5.1.
- Actionable names in the Focus List include ASML Holding (ASML.NL; ASML:NA), Be Semiconductor Industries (BESI.NL; BESI:NA), Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Technogym (TGYM.IT; TGYM:IM), H Lundbeck B (HLB.DK; HLUNB:DC), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), Rolls Royce Holdings (RR.GB; RR/:LN), and Hemnet Group (HEMN.SE; HEM:SS).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 closed ~60bps higher at a new all-time high, while the Nasdaq gained
20bps yesterday and is just 1% off its all-time highs. Support for the indices is at their rising 10-DMA (5,591/18,328), followed by the 21-
DMA (5,529/18,050). The distribution day count stands at three on both indices.
Won Europe Today
We released our European Weekly Summary yesterday, click here to access the report. Key points from it include:
- The Stoxx 600 remains in an Uptrend Under Pressure with six distribution days. The index gained 145bps last week and traded above its 50-DMA. All major markets were trading above their key moving averages, except Ireland and Finland.
- Retail, Health Care, Capital Equipment, and Travel and Leisure gained last week, while Technology and Energy lagged. On the rotation charts, Technology, Utility, and Retail showed improving short-term momentum.
