The U.S. market was shifted back to a Confirmed Uptrend from an Uptrend Under Pressure. On Friday, the S&P 500 and Nasdaq
gained 79bps and 115bps, respectively, and closed at new all-time highs. Indices have rebounded well from support near their 50-DMA
and quickly retook and held above their 21-DMA (6,685/22,721), which will act as primary support once again. The distribution day count
stands at three and six, respectively, with two days set to expire on the Nasdaq today and Wednesday after the close.
Author: Deepashree MC
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 Ems-Chemie ‘N’ (EMSN.CH; EMSNZ:TQ) and SaintGobain (SGO.FR; SGO:FP).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were up 60–90bps yesterday on higher d/d volume.
Indices have rebounded from their 10-DMA (6,698/22,789), with next support at their 21-DMA (6,674/22,672). The distribution day count
stands at three and six, respectively, with two days set to expire on the Nasdaq next week.
Won Europe Today
Yesterday,
- European markets ended lower, snapping their winning streak, as weak regional corporate earnings dampened sentiment. Technology stocks led the declines, while the energy sector gained on higher oil prices. Investors now await key monetary policy decisions from the European Central Bank and the U.S. Federal Reserve in the coming week.
- The Stoxx 600 ended 0.2% lower after recording gains in its last two sessions. The index remains extended from its key moving averages. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among key movers on the Stoxx 600, shares of French skincare group L’Oréal (OR@F.FR; OR:FP) fell ~7% after the company’s Q3 sales missed consensus due to a weak performance in the U.S. Meanwhile, shares of the U.K.-based broadcasting company ITV (ITV.GB; ITV:LN) lost more than 8% after its largest shareholder, Liberty Global, reduced its stake by 50%.
- Among sectors, Travel and Leisure (+144bps) and Retail (+97bps) led the gains, while Automobile (-152bps) and Technology (-143bps) lagged the most.
- Among major indices, France’s CAC 40 pulled back 0.6% but continued to trade at record highs. The index remains extended from its near-term moving averages. Germany’s DAX 30 closed 0.6% lower and breached its 10-DMA. The index is testing support at its 21-DMA. The U.K.’s FTSE 100 gained almost 1% after finding support at its near-term moving averages. The index has resistance at its October 8 high.
- Norway and Austria were shifted to a Rally Attempt from a Downtrend after the indices recorded Day 3 of their rally attempt.
- Denmark, France, Sweden, and Belgium recorded their first, third, fourth, and fifth distribution day, respectively.
- Eleven of the 16 indices we track closed in the red. Ten are in a Confirmed Uptrend, two in an Uptrend Under Pressure, and four in a Rally Attempt. The average distribution day count stands at 3.5.
- Actionable name in the European Focus List is Safran (SGM.FR; SAF:FP).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined 53bps and 93bps, respectively, on higher
d/d volume, with each recording a distribution day. Indices are testing support at the 10-DMA (6,689/22,755) with next support at the 21
DMA (6,668/22,645). The distribution day count has increased to three and six, respectively.
Won Europe Today
Yesterday,
- European markets extended their winning streak, lifted by continued strength in defense stocks and a record close for French equities, which have been rallying since the Prime Minister survived two no-confidence votes last week. However, mining stocks lagged as gold, silver, and copper prices fell.
- The Stoxx 600 closed 0.2% higher and is making fresh highs above all its key moving averages. Immediate support is at its 10-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among key movers on the Stoxx 600, shares of Swedish lock maker Assa Abloy (ASSB.SE; ASSAB:SS) rose more than 5% after the company reported better-than-expected Q3 operating profit. On the flip side, shares of Nordnet (NORD.SE; SAVE:SS), an online broker company, declined 4.7% on softer-than-expected Q2 earnings.
- Among sectors, Automobile (+130bps) and Travel and Leisure (+64bps) led the gains, while Mining (-130bps) and Food and Beverage (-54bps) underperformed.
- Among major indices, France’s CAC 40 closed 0.6% higher and is at its new all-time high, boosted by strong momentum in the luxury sector. The index is extended from its key moving averages, with next support at its 10-DMA.Germany’s DAX 30 extended its gains and closed 0.3% higher. The index tested support at its 50- and 100-DMA and is back above all its key moving averages. Next resistance is at its October 10 high. The U.K.’s FTSE 100 closed 0.2% higher and retook its 10-DMA. It is now trading above all its key moving averages.
- Norway and Austria recorded Day 2 of their rally attempt.
- Twelve of the 16 indices we track closed in the green. Ten are in a Confirmed Uptrend, two in an Uptrend Under Pressure, two in a Rally Attempt, and two in a Downtrend. The average distribution day count stands at three.
- Actionable name in the European Focus List is Safran (SGM.FR; SAF:FP).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 was flat, while the Nasdaq declined 16bps yesterday, both on
higher volume. Indices have immediate support at their 10-DMA (6,686/22,758), followed by their 21-DMA (6,665/22,635). The distribution
day count stands at two and five, respectively, after one distribution day expired on the Nasdaq yesterday after the close.
Won Europe Today
We released our European Weekly Summary yesterday. Click here for the full report. Key points from it include:
- The Stoxx 600 posted modest gains last week and is testing support at its 21-DMA. It remains in a Confirmed Uptrend. Among major markets, the U.K. was shifted to an Uptrend Under Pressure after the index breached its 21-DMA.
- On the sector front, Consumer Cyclical, Consumer Staple, and Retail led the gains, while Capital Equipment and Financial lagged the most.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were up 105–135bps yesterday on lower volume.
Both indices are now trading above their 10-DMA (6,675/22,715) and 21-DMA (6,658/22,604) and are approaching 52-week highs. The
distribution day count stands at two and six, respectively, with one distribution day set to expire on the Nasdaq today after market close.
Won Europe Today
On Friday,
- European markets traded lower as banking sector concerns spread from the U.S., where regional and investment bank shares declined amid fears of hidden bad loans and weakening credit quality. However, France’s CAC recorded its best weekly gains in six months, supported by renewed strength in the luxury sector.
- The Stoxx 600 fell almost 1% on higher volume and breached its 10-DMA. Next support remains at its 21-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among key movers on the Stoxx 600, shares of Ray-Ban manufacturer EssilorLuxottica (EI.FR; EL:FP) rallied ~13% after the company added nearly $20B in market value, driven by enthusiasm for its AI-powered Ray-Ban Meta glasses. Shares of German auto-supplier Continental (CONX.DE; CON:GR) gained more than 11% after the company reported better-than-expected preliminary Q3 FY25 results.
- Among sectors, Automobile (+84bps) and Telecommunications (+74bps) gained the most, while Banks (-260bps) and Mining (-248bps) lagged the most.
- Among major indices, France’s CAC 40 was down ~0.2% but remained slightly extended above its near-term moving averages. Immediate support is at its 10-DMA. Germany’s DAX 30 pulled back sharply and closed 1.8% lower on higher volume. The index breached support at its 50- and 100-DMA intraday. Next support is at its October 1 high. The U.K.’s FTSE 100 closed 0.9% lower and broke below its 10- and 21-DMA. The index is testing support at its 50-DMA.
- Eight of the 16 indices we track recorded a distribution day. The Netherlands leads the count with five distribution days. The U.K., the Stoxx 600, Sweden, and Belgium have four distribution days each.
- The U.K. was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 21-DMA. Norway was downgraded to a Downtrend from an Uptrend Under Pressure as the index breached its 100-DMA. Austria was shifted to a Downtrend from a Rally Attempt as the index hit a new low.
- All the 16 indices we track closed in the red. Nine are in a Confirmed Uptrend, two in an Uptrend Under Pressure, three in a Rally Attempt, and two in a Downtrend. The average distribution day count stands at 3.6.
- Actionable name in the European Focus List is Safran (SGM.FR; SAF:FP).
