The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 74bps and 39bps, respectively, and recorded their second distribution day. The S&P 500 has broken below its 10-DMA, with next support at the 21-DMA (5,222). The Nasdaq continues to trade above its key moving averages, with support at the 10-DMA (16,638).
Author: Deepashree MC
Won Europe Today
Yesterday,
- European markets continued to trade choppily. The Stoxx 600 declined 34bps, closing slightly below its 10-DMA on above average volume. Investors were concerned with the U.K.’s marginally higher-than-expected inflation reading. In the upcoming sessions, we expect strong performance of semiconductor-related stocks behind a record quarter from Nvidia. However, the Fed’s comments on holding interest rates higher for longer could weigh on investor sentiments. The PMI data of Germany, France, and Eurozone will be released today. Next support for the Stoxx 600 is at its 21-DMA (515; 1.1% below), followed by its 50-DMA (2.1% below). We recommend that investors add positions in names that are coming out of proper bases in leading industry groups post earnings.
- Among sectors, Technology (+61bps) and Travel and Leisure (+9bps) were the notable gainers, while Mining (-198bps) and Oil and Gas (-106bps) underperformed.
- Among major indices, France’s CAC 40 pulled back, closing 61bps lower. The index breached its 21- and 50-DMA. Supportis at its May 3 highs (8,003; 1.08% below). Germany’s DAX 30 declined 23bps and faced resistance at its 10-DMA (18,737). Next level of support is at its May 7 highs (18,442; 1.2% below), followed by its 21-DMA (1.4% below). The U.K.’s FTSE 100 declined 55bps, breaching its 10-DMA (8,417) on above average volume. Next support is at its 21-DMA (8,283; 1.03% below).
- Twelve of the 16 indices we track closed in the red. Fourteen markets remain in a Confirmed Uptrend, one (France) in a Rally Attempt, and one (Ireland) in an Uptrend Under Pressure. The Stoxx 600, Austria, and the U.K. recorded their first, third, and fourth distribution day, respectively. The average distribution day count stood at 2.6.
- Actionable names in the Focus List include Beiersdorf (BEIX.DE; BEI:GR), Saab (SAAB.SE; SAABB:SS), Safran (SGM.FR; SAF:FP), Swissquote (SQN.CH; SQN:SW), Rolls Royce (RR.GB; RR/:LN), Bachem Holding (BANB.CH; BANB:SW), and Universal Music Group (UNMG.NL; UMG:NA).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined ~27bps on higher d/d volume and recorded its first distribution day, while the Nasdaq was down ~18bps. Indices are trading near all-time highs, with strong support at their 10-DMA (5,270/16,616), followed by the 21-DMA (5,218/16,401).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained ~25bps each. Support for the indices continues to be their respective rising 10-DMA (5,262/16,575), followed by the 21-DMA (5,209/16,361). There are no distribution days on the S&P 500 and one on the Nasdaq.
Won Europe Today
Yesterday,
- European markets remained choppy as the Stoxx 600 declined 18bps, pulling back to its 10-DMA. Next support is at its May 10 highs (521; 30bps below), followed by its 21-DMA (1.6% below) and 50-DMA (2.5% below). Markets remain tentative ahead of Nvidia’s earnings and economic data release due Thursday. Oil prices have declined on fears of U.S. demand slowing on sticky high interest rates. Investors will also react to the U.K.’s easing but hotter-than-expected inflation data, which came in before market open today. We recommend that investors book gains in stocks that are breaking below their logical levels of support. Selectively add positions in top names that are coming out of proper bases in leading industry groups post earnings.
- Among sectors, Mining (+49bps) and Health Care (+42bps) gained the most, while Food and Beverage (-113bps), Travel and Leisure (-83bps), and Technology (-56bps) lagged.
- Among major indices, France’s CAC 40 closed 67bps lower, breaching its 10-DMA (8,190). The index is testing support at its converging 21- and 50-DMA (8,103.6; 46bps below). Next support is at its May 2 lows (7,908; 2.8% below). Germany’s DAX fell 29bps and breached its 10-DMA (18,721). Next level of support is at its 21-DMA (1.8% below). The U.K.’s FTSE 100 declined 22bps, closing marginally above its 10-DMA (8,415.7).
- Eleven of the 16 indices we track closed in the red. Fourteen indices remain in a Confirmed Uptrend, one (France) in a Rally Attempt, and one (Ireland) in an Uptrend Under Pressure. The U.K. and Belgium recorded their fourth distribution day, while the Netherlands and Germany logged their first, taking the average distribution day count to 2.9.
- Actionable names in the Focus List include Beiersdorf (BEIX.DE; BEI:GR), Saab (SAAB.SE; SAABB:SS), Safran (SGM.FR; SAF:FP), Swissquote (SQN.CH; SQN:SW), Rolls Royce (RR.GB; RR/:LN), and Bachem Holding (BANB.CH; BANB:SW).
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP):The discretionary index closed slightly higher last week but continues to face resistance at its 50-DMA. It has strong support at its 200-DMA (-3%). We expect the index to consolidate in the near term. We recommend investors wait for the index to decisively retake its 50-DMA, followed by a break above the $182 level before turning constructive.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 continued to trade constructively, gaining 76bps as of Wednesday and remaining in a Confirmed Uptrend. The index is extended from its moving averages, expecting a near-term pullback with its short-term moving averages catching up.
- Among sectors, Financial, Technology, and Transportation gained the most, while Energy and Capital Equipment performed weakly.
- On the rotation charts, Financial, Health Care, Transportation, and Capital Equipment showed strong momentum. Technology with optional categories of Consumer Cyclical and Retail were under pressure.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 gained marginally, while the Nasdaq closed ~65bps higher. Support for the indices continues to be their respective rising 10-DMA (5,249/16,518), followed by the 21-DMA (5,198/16,314). There are no distribution days on the S&P 500 and one on the Nasdaq.
Won Europe Today
On Friday,
- European markets had a weak session, with 12 of the 16 indices we track closing in the red. The Stoxx 600 was down 13bps, taking a pause near highs as its near-term moving averages are catching up. Near-term support is along its 10-DMA (77bps below), followed by its 21-DMA (219bps below). We recommend that investors add positions in names that are coming out of proper bases in leading industry groups post earnings.
- Among sectors, Mining (+1.69%) outperformed, followed by Banks (+63bps) and Food and Beverage (+44bps). Leisure and Travel and Utility lagged and were down 1% and 0.6%, respectively.
- Among major indices, France’s CAC 40 fell 0.26% and tested strong support at its 10-DMA. Immediate support is at its converging 21- and 50-DMA (90bps below). Germany’s DAX 30 was down 0.12% and traded very close to its 10-DMA (18,632). Near-term support is at its April 2 highs (18,567; 78bps below). The U.K.’s FTSE 100 declined 0.22%.
- Fourteen of the 16 indices we track are in a Confirmed Uptrend, one (France) in a Rally Attempt, and one (Ireland) in an Uptrend Under Pressure. Norway was closed on account of a market holiday. Denmark and the U.K. recorded their first and third distribution day, respectively. The average distribution day count currently stands at 3.6.
- Actionable names in the Focus List include Beiersdorf (BEIX.DE; BEI:GR), Swissquote (SQN.CH; SQN:SW), and Bachem Holding (BANB.CH; BANB:SW).
Won Global View
The U.S. market has been upgraded to a Confirmed Uptrend. The upgrade was triggered as the S&P 500 and the Nasdaq gained 1.5% and 2.2%, respectively, and pushed back through their prior highs. Initial support at their 10-DMA (5,236/16,471), followed by the 21-DMA (5,187/16,268). There are no distribution days on the S&P 500 and one on the Nasdaq.
