The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~60bps and ~85bps, respectively, on lower volume, rebounding from support at their 10-DMA (5,467/17,773). The next level of support is at the rising 21-DMA (5,423/17,540). The distribution day count remains at three and four, respectively, with one expiring on the Nasdaq today after the close. One distribution day is set to expire on each index after the close on Friday.
Author: Deepashree MC
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 72bps last week, remaining in an Uptrend Under Pressure. France’s CAC 40 took a hit ahead of the election in France over the weekend. It remained the weakest performing index, closing 9% off its 52-week high.
- Among sectors, Energy gained last week, while Technology, Defense, and Health Care witnessed improvement in their short-term momentum.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~30bps and ~85bps, respectively, on lower volume and are testing support at their 10-DMA (5,458/17,717). The next level of support is at the rising 21-DMA (5,415/17,492) which is 1–2% lower. The distribution day count remains at three and four, respectively, with one expiring on the S&P 500 and two expiring on the Nasdaq this week.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 was essentially flat last week while the Nasdaq rose ~20bps. Indices are just below all-time highs and are testing 10-DMA support (5,454/17,681) after staging a downside reversal on Friday. The next level of support is at the rising 21-DMA (5,409/17,453) which is 1–2% lower. The distribution day count stands at three and four, respectively.
Won Europe Today
On Friday,
- European markets closed on a negative note, with investors sinking in key inflation data from the U.S. and Eurozone. Inflation slowed down slightly in France and Spain, while picked up in Italy. The U.S. witnessed its lowest consumption expenditure price index reading in more than three years.
- The Stoxx 600 fell 23bps on higher volume, declining for a fourth consecutive day. The index tested resistance at its marginally declining 10-DMA (515; +0.7%). Support remained at its 100-DMA (508.4; -0.6%). We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.
- Among sectors, Technology (+65bps), Oil and Gas (+35bps), and Telecommunications (+35bps) were the prominent gainers. Retail (-99bps) and Utility (-58bps) declined the most.
- Among major indices, France’s CAC 40 declined 68bps. It was trading below all its key moving averages and making new lows. The index expects to find support at its June 14 lows (7,464; -0.2%). Germany’s DAX 30 inched 24bps higher, retaking its 21-DMA on higher volume. Short-term resistance is at its 50-DMA (18,380.2; +0.8%). The U.K.’s FTSE 100 continued to test resistance at its converging short-term moving averages and closed 19bps lower.
- Portugal and Ireland were shifted back to a Downtrend as both indices had a failed rally attempt. Belgium was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 50-DMA. Belgium and the Stoxx 600 recorded their second and sixth distribution day, respectively.
- Eleven of the 16 indices we track closed in the red. Two markets are in a Confirmed Uptrend, four in an Uptrend Under Pressure, two (Ireland and Portugal) in a Downtrend, and eight in a Rally Attempt. The average distribution day count stood at 5.3.
- Actionable names in the Focus List include Vat Group (VACN.CH; VACN:SW), Relx (REL.GB; REL:LN), Technogym (TGYM.IT; TGYM:IM), Nemetschek (NEMX.DE; NEM:GR), Siegfried ‘R’ (SFZN.CH; SFZN:SW), Talanx Aktgsf (TLXX.DE; TLX:GR), and H Lundbeck B (HLB.DK; HLUNB:DC).
U.S. Economic Summary
Q1 GDP decelerated, in line with estimates: As per the final estimate, the U.S. economy grew 1j4% on an annualized basis in Q1 2024, in line with estimates, marginally higher than 1j3% in the second estimate. However, the figure continued to point toward the lowest growth since the contractions in H1 FY22j Consumer spending slowed more than expected due to reduced consumption of goods and services Non-residential investments were revised higher. Private inventories declined, while residential investment witnessed mid-double-digit growth.
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 Airbus (AIRS.FR; AIR:FP) and Vinci (DG@F.FR; DG:FP).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~10bps and 30bps, respectively, on higher d/d
volume. Indices continue to consolidate above their rising 10-DMA (5,452/17,669), with the next level of support at their 21-DMA
(5,403/17,425). The distribution day count stands at three and four, respectively, with one expiring on each index today after the close
Won Europe Today
Yesterday,European markets closed negative,with the euro suffering a second day of losses against the U.S. dollar, declining 0.3%.Investors are concerned and evaluating risks ahead of the release of the U.S. inflation data on Friday. The Stoxx 600 extended its losses from the previous trading session, closing 56bps lower on higher volume. It breached its 10-DMA (515), with next support at its 50 DMA (508.1; -1.3%). We continue to recommend that investors remain selective while adding positions. Trim positions in stocks that have breached their logical levels of support.Most sectors declined, led by Travel and Leisure (-182bps) and Automobiles (-122bps). Technology (+31bps) was the lone gainer. Among major indices, France’s CAC 40 closed marginally lower than its flattish 200-DMA (7,617.7; +0.1%). Immediate support is at its June 19 closing price (7,560; -0.6%). Germany’s DAX 30 traded in line with its 10-DMA (18,161). The index tested resistance at its 50-DMA (18,363.4). Next support is at its 100-DMA (18,036.9; -0.6%). The U.K.’s FTSE 100 lost 27bps and closed in line with its 21-DMA (8,222.2; -0.03%). The index was still trading above all its key moving averages. Sweden was shifted to a Rally Attempt from a Downtrend. Belgium recorded its first distribution day. The Stoxx 600, Denmark, and the Netherlands increased their distribution day count to five, six, and nine, respectively. All the 16 indices we track closed in the red, except Sweden. 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 five.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~16bps and ~49bps, respectively, on lower-than average volume. The indices continue to consolidate above their rising 10-DMA (5,446/17,627), with the 21-DMA (5,395/17,382) as a key level of support. The distribution day count remains at four on each index, with two expiring on the S&P 500 after the close today and tomorrow and one expiring on the Nasdaq after the close tomorrow.
