The U.S. market was shifted to an Uptrend Under Pressure. The S&P 500 declined 1.7% last week and is 2% off highs, while the
Nasdaq was down 2.2% and is 3% off highs. The S&P 500 broke below its 21-DMA but is still slightly above the 50-DMA (6,010). The
Nasdaq breached 21- and 50-DMA, leaving next support at the 100-DMA (19,192). The distribution day count stands at six apiece after
each index picked up one on Friday.
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 Enagas (ENAG.ES; ENG:SM) and Atrium Ljungberg (ATRJ.SE; ATRLJB:SS).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined 43bps on higher daily volume and registered a distribution
day. The Nasdaq was down 47bps and continues to trade in a range, 1% off highs. Indices have immediate support at the 21-DMA (6,066;
19,773), followed by the 50-DMA (6,011; 19,690). The distribution day count stands at five on each index.
Won Europe Today
Yesterday,
- European stocks closed lower, with the Stoxx 600 posting its biggest decline in the year, amid rising fears of a trade dispute between the U.S. and the EU following the latest U.S. tariff threats. Adding to market jitters, Germany’s bond yields hit a two-week high amid expectations of increased government spending on defense. On the economic front, the U.K.’s inflation rose 3% y/y in January, above estimates of a 2.8% y/y rise.
- Among key movers on the Stoxx 600, shares of Nexans (NXS.FR; NEX:FP) jumped 10% after the French cable maker reported strong revenue and earnings for H2 FY24, while shares of Philips (PHIL.NL; PHIA:GK) fell 11% as the company reported lower-than-expected Q4 results.
- The Stoxx 600 was testing support at the 10-DMA after a 0.9% pullback from its all-time high, with next support at its 21-DMA (-1.7%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Overall sector performance was negative. Basic Resources (-239bps), Retail (-234bps), and Chemicals (-234bps) were the top losers, while Utility (+75bps) was the only outlier.
- Among major indices, France’s CAC 40 pulled back 1.2% and tested support at its 10-DMA. Next support is at its 21-DMA (-1.5%). Germany’s DAX 30 declined 1.8% from its all-time high and has immediate support at its 10-DMA (-0.6%). The U.K.’s FTSE 100 closed 0.6% lower and breached support along its 10-DMA. Immediate support is at its 21-DMA (-0.6%).
- Fourteen of the 16 markets we track closed in the red. Fourteen are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and one in a Rally Attempt.
- The U.K. and Sweden recorded their fifth distribution day, while Italy registered its fourth. France, Germany, Ireland, and Switzerland recorded their third distribution day. Finland and Belgium registered their second distribution day, while the Netherlands recorded its first. The average distribution day count stood at 3.06.
- Of the 31 European Focus List names, 30 ideas are trading above their 200-DMA, while26 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Moncler (MONC.IT; MONC:IM), Vimian Group (VIMG.SE; VIMIAN:SS), Ferrari (RACE.IT; RACE:IM), Flutter Entertainment (FLTR.GB; FLTR:LN), and Adidas (Xet) (ADSX.DE; ADS:GR).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 ended 24bps higher at a new closing high. The Nasdaq was up 8bps
on above average volume and is trading 1% off highs. Indices have immediate support at the 21-DMA (6,061; 19,754), followed by the 50-
DMA (6,010; 19,684). The distribution day count stands at four on the S&P 500 and five on the Nasdaq.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European indices extended gains last week, with 10 markets, including Germany and the U.K., at their 52-week highs. France is 1% away and Finland and Norway are 1–2% below their 52-week highs, while Portugal regained its 200-DMA. Denmark remains the weakest, 33% off highs. Most sectors gained, led by Retail (+4.1%) and Consumer Cyclical (+3.8%), while Health Care (-1.4%) and Utility (-0.8%) lagged.
- On the rotation graph, most sectors gained momentum, with Financial, Capital Equipment, and Consumer Cyclical leading. Energy, Basic Material, and Technology remained strong, while Transportation and Retail rebounded after a brief slowdown. Health Care showed signs of improvement but remained weak, while Consumer Staple lagged.
Won Global View
The U.S. market has been shifted to a Confirmed Uptrend. The S&P 500 closed 24bps higher and registered a new closing high. The
Nasdaq was up 7bps on above average volume and is trading 1% off highs. Indices have immediate support at the 21-DMA (6,053;
19,724), followed by the 50-DMA (6,009; 19,678). The distribution day count stands at four and five, respectively.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. Despite bouncing 1–2% higher last week, indices remain in a sideways range
just below all-time highs (6,128; 20,204). Should indices close at a new all-time high, the market status will shift back to a Confirmed
Uptrend. Until then, support is at their 50 DMA (6,008; 19,667), with four and five distribution days on the S&P 500 and Nasdaq,
respectively.
Won Europe Today
Yesterday,
- European stocks closed higher, boosted by a strong rally in the defense sector. The sector experienced its largest surge since Russia’s 2022 invasion of Ukraine, as investors reacted to expectations of rising military spending driven by U.S. pressure. Meanwhile, geopolitical tensions remain in focus as the U.S. pushes forward with Ukraine peace talks, notably excluding Europe and Kyiv, sparking concerns over the region’s role in negotiations.
- Among key movers on the Stoxx 600, shares of Renk Group (R3NKX.DE; R3NK:GR) and Rheinmetall (RHMX.DE; RHM:GR) rallied 17.5% and 14%, respectively, while shares of Saab (SAAB.SE; SAABB:SS) surged more than 16%. In addition, shares of BAE Systems (BA.GB; BA/:LN) jumped 9%, its biggest single-day rise since July 2022.
- The Stoxx 600 booked a gain of 0.5% and ended the session at an all-time high. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Most sectors closed in positive territory. Travel & Leisure (+115bps), Banks (+100bps), and Basic Resources (+100bps) were the top gainers, while Utility (-23bps) and Chemicals (-19bps) were the only losers.
- Among major indices, France’s CAC 40 advanced for the straight sixth session and gained 0.1%. Germany’s DAX 30 jumped 1.3%, hitting a new all-time high, fueled by a rally in defense stocks following commitments from European policymakers to boost military spending. The U.K.’s FTSE 100 bounced off its 10-DMA and booked a gain of 0.4%. Immediate resistance is at its all-time high (+0.4%).
- Fifteen of the 16 markets we track closed in the green. Fourteen are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and one in a Rally Attempt.
- Of the 31 European Focus List names, 30 ideas are trading above their 200-DMA, while27 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Moncler (MONC.IT; MONC:IM), Vimian Group (VIMG.SE; VIMIAN:SS), Flutter Entertainment (FLTR.GB; FLTR:LN), Boss (Hugo) (Xet) (BOSSX.DE; BOSS:GR), Lonza Group (LONN.CH; LONN:SW), Games Workshop (GAW.GB; GAW:LN), and Talanx Aktgsf. (Xet) (TLXX.DE; TLX:GR).
Won Europe Today
On Friday,
- European markets closed lower as investors grew cautious amid uncertainty over U.S. tariffs. However, luxury stocks surged after Hermes reported strong earnings, fueling optimism in the high-end retail sector. Overall, sentiment remained subdued as traders analyzed corporate earnings and tracked progress toward a potential peace agreement to end the war in Ukraine.
- Among key movers on the Stoxx 600, shares of Interpump (IP.IT; IP:IM) fell 16.3% after reporting a 14.9% drop in FY24 core profit, while shares of Umicore (UMI.BE; UMI:BB) declined 9.4% on weaker-than-expected earnings for FY24. Meanwhile, shares of Tomra (TOM.NO; TOM:NO) jumped 12.8% to a two-year high after beating Q4 profit estimates.
- The Stoxx 600 declined 0.2%, ending a four-session rally. Support is at its rising 10-DMA (-1.5%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Most sectors closed in positive territory. Basic Resources (+55bps), Chemical (+44bps), and Banks (+37bps) were the top gainers while Health Care (-146bps) and Telecommunications (-51bps) were the top losers.
- Among major indices, France’s CAC 40 extended the positive momentum and jumped 0.1%. Germany’s DAX 30 closed the session 0.4% lower after four consecutive sessions of gains. It is above all its key moving averages, with immediate support at the 10-DMA (-2.6%). The U.K.’s FTSE 100 declined 0.4%, posting its second straight loss. It is testing support at its 10-DMA, and has next support at the 21-DMA (-1.2%).
- Eight of the 16 markets we track closed in the green. Fourteen are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and one in a Rally Attempt.
- The U.K. and Sweden recorded their fourth distribution day while Ireland recorded its second distribution day. The average distribution day count stood at 2.57.
- Of the 31 European Focus List names, 30 ideas are trading above their 200-DMA, while27 ideas are trading above their 50-DMA.
- We added Moncler (MONC.IT; MONC:IM) to our European Focus List after the stock broke out of a stage-one, 47-week cup-with-handle base after reporting strong Q4 and FY24 results.
- We removed Alfa Laval (SE) from our European Focus list after the stock pulled back 7% from its 52-week high, breaching support along its 50- and 200-DMA on above average volume.
- Actionable names in the Focus List include Ferrari (RACE.IT; RACE:IM), Boss (Hugo) (Xet) (BOSSX.DE; BOSS:GR), Lonza Group (LONN.CH; LONN:SW), Games Workshop (GAW.GB; GAW:LN), Rolls Royce Holdings (RR.GB; RR/:LN), and EQT (EQT.SE; EQT:SS).
