The U.S. market remains in a Confirmed Uptrend. The S&P 500 rose 3bps on lower volume, while the Nasdaq closed slightly negative
on higher volume. The first level of support is at the rising 10-DMA (6,397/21,409), followed by the 21-DMA (6,349/21,149). The
distribution day count stands at five and two, respectively.
Author: Deepashree MC
Won Europe Today
Yesterday,
- European markets closed higher, nearing a two-week peak, boosted by strong gains in Healthcare and Technology stocks. Sentiment improved on rising expectations of Fed rate cuts after U.S. inflation came in below forecasts.
- The Stoxx 600 rose 0.5%, bouncing off its 21-DMA and retook the resistance of July 31 highs. Next resistance is at its July 28 highs. We recommend a selective approach to adding names with high volume on breakouts or decisive retake of key resistance levels.
- Among significant movers on the Stoxx 600, shares of British insurance group, Beazley (BEZ.GB; BEZ:LN) declined ~12% after it trimmed its annual premium revenue growth guidance.
- Among sectors, Healthcare (+156bps) and Technology (+121bps) were the strongest gainers while Energy (-141bps) and Travel and Leisure (-64bps) lagged the most.
- Among major indices, France’s CAC 40 closed 0.6% higher marking its second consecutive day of gains. The index found strong support at its 21-DMA and is trading above all its key moving averages. Germany’s DAX 30 bounced off its 50-DMA and closed 0.7% higher. It reclaimed its 21-DMA support. The U.K.’s FTSE 100 closed higher for a third straight session and is trading constructively along its 10-DMA.
- All of the 16 indices we track closed in the green. Five are in a Confirmed Uptrend, eight in a Rally Attempt, and three in an Uptrend Under Pressure. The average distribution day count stands at 2.67.
- Of the 28 European Focus List names, 22 ideas are trading above their 50-DMA, and all are trading above their 200-DMA.
- Actionable names in the European Focus List are Abb Ltd (ABBN.CH; ABBN:SW), Natwest Group (NWG.GB; NWG:LN), Talanx Aktgsf. (TLXX.DE; TLX:GR), Airbus (AIRS.FR; AIR:FP), Lottomatica Group (LOTG.IT; LTMC:IM), and Bawag Group (BWGP.AT; BG:AV).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq advanced 32bps and 14bps, respectively, and closed at
new all-time highs. Support is at their 10-DMA (6,382/21,342), followed by their 21-DMA (6,337/21,093). The distribution day count stands
at five and two, respectively
Won Europe Today
Yesterday,
- European markets rebounded after the U.S. and China extended their tariff truce by 90 days, while U.S. inflation came in line with expectations. The data fueled expectations of a Federal Reserve rate cut in September.
- The Stoxx 600 was up 0.2% after finding support at its 21-DMA. Near-term resistance is at its July 31 high. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among significant movers on the Stoxx 600, shares of German software players SAP (SAPX.DE; SAP:GR) and Nemetschek (NEMX.DE; NEM:GR) were down 7% and 11%, respectively, amid concerns of weakness in the technology segment due to artificial intelligence.
- Among sectors, Energy (+156bps) and Travel and Leisure (+118bps) led the gains, while Technology (-211bps) and Financial Services (-85bps) lagged the most.
- Among major indices, France’s CAC 40 closed 0.7% higher after finding support at its 100-DMA. The index reclaimed its 21- and 50-DMA. It is trending above all its key moving averages. Germany’s DAX 30 marked its third consecutive session of losses, closing 0.2% lower. The index has breached its 21-DMA and is testing support at its 50-DMA.The U.K.’s FTSE 100 rallied for a second consecutive day, closing 0.2% higher. It is trading above all its key support levels.
- Italy was shifted to a Confirmed Uptrend from an Uptrend Under Pressure as the index reclaimed its previous rally high.
- Thirteen of the 16 indices we track closed in the green. Five are in a Confirmed Uptrend, eight in a Rally Attempt, and three in an Uptrend Under Pressure. The average distribution day count stands at 2.4.
- All the 28 European Focus List names are trading above their 200-DMA, while 21 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Abb (ABBN.CH; ABBN:SW), Natwest Group (NWG.GB; NWG:LN), Talanx (TLXX.DE; TLX:GR), Airbus (AIRS.FR; AIR:FP), Lottomatica (LOTG.IT; LTMC:IM), and Bawag (BWGP.AT; BG:AV).
Won Global View
The U.S. market has shifted to a Confirmed Uptrend. The S&P 500 and Nasdaq advanced 1.1% and 1.4%, respectively, to all-time
highs. Support is at their 10-DMA (6,363/21,260), followed by their 21-DMA (6,325/21,031). The distribution day count stands at five and
two, respectively.
Won Europe Today
Yesterday,
- European markets closed lower as investors remained cautious ahead of a busy week of key tariff negotiations and U.S.-Russia talks on the Ukraine war.
- The Stoxx 600 closed the session flat. The index continues to test support at its 21-DMA. Near-term support is at its 50-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among significant movers on the Stoxx 600, shares of Denmark-based wind energy maker Oersted (DEN.DK; ORSTED:DC) fell ~29% after the company announced a $60B crown rights issue.
- Among sectors, Telecommunication (+100bps) and Banks (+77bps) led the gains, while Chemicals (-115bps) and Travel and Leisure (-77bps) lagged the most.
- Among major indices, France’s CAC 40 declined almost 0.6% after hitting resistance at its 21-DMA and closed below its 50-DMA. It is testing support at its converging 10- and 100-DMA.Germany’s DAX 30 closed 0.3% lower and breached its 21-DMA. It is testing support at its flattish 10- and 50-DMA. The U.K.’s FTSE 100 advanced 0.3% and reclaimed its 10-DMA after finding support at its 21-DMA. It is trading above all its key moving averages.
- Sweden recorded its fifth distribution day.
- Denmark and the Netherlands were shifted to a Rally Attempt from a Downtrend after the indices recorded Day 3 of their rally attempt.
- Eleven of the 16 indices we track closed in the red. Four are in a Confirmed Uptrend, eight in a Rally Attempt, and four are in an Uptrend Under Pressure. The average distribution day count stands at 2.4.
- All the 25 European Focus List names are trading above their 200-DMA, while 18 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Lottomatica (LOTG.IT; LTMC:IM) and Bawag (BWGP.AT; BG:AV).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined 25bps and 30bps, respectively, on higher
d/d volume, recording a distribution day each. Support is at their 10-DMA (6,345/21,167), followed by their 21-DMA (6,313/20,966). The
distribution day count increased to five and two, respectively.
Won Europe Today
On Friday,
- European markets closed higher, marking their strongest weekly gain in 12 weeks, amid optimism over a potential Russia-Ukraine ceasefire that could see Russia retain seized territories. Banking stocks led the rally, fueled by robust earnings and a relatively lower tariff-related risks.
- The Stoxx 600 closed 0.2% higher, marking its second consecutive day of gains. The index retook its 21- and 50-DMA in the last two sessions. Near-term resistance is at its July 29 high. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among sectors, Mining (+177bps) and Banking (+135bps) led the gains, while Travel and Leisure (-92bps) and Utility (-79bps) lagged the most.
- Among major indices, France’s CAC 40 bounced off 0.4% after finding support at its 100-DMA and reclaimed its 50-DMA. Next resistance is at its 21-DMA. Germany’s DAX 30 closed 0.2% lower and is testing support at its 21-DMA. Next support is at its flattish 10- and 50-DMA. The U.K.’s FTSE 100 closed the session flat, slightly below its 10-DMA. The index is testing support at its 21-DMA.
- Denmark and the Netherlands recorded Day 2 of their rally attempt.
- Thirteen of the 16 indices we track closed in the green. Four are in a Confirmed Uptrend, six in a Rally Attempt, four in an Uptrend Under Pressure, and two in a Downtrend. The average distribution day count stands at 2.4.
- All the 25 European Focus List names are trading above their 200-DMA, while 18 ideas are trading above their 50-DMA.
Actionable names in the European Focus List are Lottomatica (LOTG.IT; LTMC:IM) and Bawag (BWGP.AT; BG:AV).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The Nasdaq closed just below all-time highs (21,457), which would have been
the trigger to shift the market back into a Confirmed Uptrend. Last Friday, the S&P 500 and Nasdaq rose 79bps and 98bps, respectively.
The S&P 500 still has minor resistance at prior highs (6,339). Indices have support at their 10-DMA (6,340/21,101), followed by their 21-
DMA (6,307/20,924). The distribution day count stands at four and one, respectively, after one distribution day expired on each index at
Friday’s close
Won Europe Today
We released our Weekly Global Laggards Report today. Click here to access the full 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 (RMS.FR; RMS:FP), Hennes & Mauritz (HMBF.SE; HMB:SS), Lifco B (LIFC.SE; LIFCOB:SS), Castellum (CAST.SE; CAST:SS), and Inditex (IND.ES; ITX:SM).
