The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up 52bps and 90bps, respectively. Indices have the
first level of support at their 10-DMA (5,052/15,925) followed by their 21-DMA (5,003/15,773). The S&P 500 remains near all-time highs
while resistance for the Nasdaq is at the November 2021 high (16,212). The distribution day count on each index stands at six.
Author: Deepashree MC
U.S. Economic Summary
- Q4 GDP second estimate 10bps below consensus: As per the second estimate, the U.S. economygrew 3.2% on an annualized basis in Q4 2023. The figure was 10bps below the first estimate and was below market expectations of 3.3% growth. The downward revision was mainly due to downward revision in private inventory investment. Overall, the increase in real GDh reflected increases in consumer spending, exports, state and local government spending, non-residential fixed investment, federal government spending, and residential fixed investment.
Won Europe Today
Yesterday,
- European markets had a weak session as 6 of the 17 indices that we track recorded distribution days. Leading
indices should continue to pullback/consolidate in the near term given they look extremely overbought. We
recommend that investors add risk coming out of proper base. - The Stoxx 600 was down 0.3% and recorded its third distribution day. It traced back to its 10-DMA. Among other
indices, France’s CAC 40 continues to trade above its 10-DMA while Germany’s DAX again made a new all-time
high. The U.K.’s FTSE 100 was down more than 0.75 and is testing support at its 21-DMA. - Among sectors, real estate stocks were down 1.8%, technology stocks were down 1.4%, while media stocks were
flat. Banks gained 0.5% while auto stocks gained 1%. - Among the 16 indices that we track in Europe, six closed in the green. The Stoxx 600, Austria, Denmark, the
Netherlands, Switzerland, and Italy recorded distribution days. - Actionable names in the Focus List include Evolution Gaming (EVOG.SE; EVO:SS), Eqt (EQT.SE; EQT:SS),
Banco Bpm (BP.IT; BAMI:IM), Vat Group (VACN.CH; VACN:SW), Nemetschek (Xet) (NEMX.DE; NEM:GR), Universal
Music Group (UNMG.NL; UMG:NA), and Straumann Hldg. (STMN.CH; STMN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 was down 17bps but remains near all-time highs. The Nasdaq fell
55bps and recorded its sixth distribution day. Indices are trading above their respective 10-DMA (5,042/15,888) and 21-DMA
(4,994/15,741). The distribution day count on each index stands at six now.
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index broke above the $74.5 price level and is facing resistance at $74.75. Next resistance is at
$75.05. A decisive break above it should be bullish for the sector. However, it continues to lag the broader market, with RS line
remaining in a downtrend with weak technical ratings. XLP
Won Europe Today
Yesterday,
- European markets had a flat-to-positive session. Leading indices continued to exhibit positive technical action.
These indices are extended in the short term and are due for a slight pullback. We recommend that investors add
risk in stocks that are coming out of proper bases. - The Stoxx 600 and France’s CAC 40 continued to trade along their respective 10-DMA. Germany’s DAX 30
continued to make new highs, breaching 17,500 on high volume. The U.K.’s FTSE continued to face resistance at
its September 2023 highs. - Among sectors, Basic Resources gained close to 1.7%, Technology rose 1%, while Utility was up 0.8%. Food &
Beverage and Insurance were flat. Media declined more than 1%.
Among the 16 indices that we track, only five closed in the red. Denmark recorded its fourth distribution day. - Actionable names in the Focus List include Evolution Gaming (EVOG.SE; EVO:SS), Eqt (EQT.SE; EQT:SS),
Banco Bpm (BP.IT; BAMI:IM), Vat Group (VACN.CH; VACN:SW), Nemetschek (Xet) (NEMX.DE; NEM:GR), Universal
Music Group (UNMG.NL; UMG:NA), and Straumann Hldg. (STMN.CH; STMN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up 17bps and 37bps, respectively. Indices are
trading above their 10-DMA (5,036/15,875) and 21-DMA (4,986/15,720). The S&P 500 remains near all-time highs, while resistance for the
Nasdaq is at the November 2021 high (16,212). The distribution day count on each index stands at six and five, respectively.
Won Global View
The U.S. market remains in a Confirmed Uptrend. Indices pulled back yesterday, with the S&P 500 and Nasdaq down 38bps and
13bps, respectively. The S&P 500 recorded its sixth distribution day yesterday but remains above all its key moving averages and near alltime highs. The Nasdaq is testing resistance along ~16,000 with five distribution days. Support for the S&P 500 and Nasdaq is at their
respective rising 10-DMA (5,027/15,839), followed by the 21-DMA (4,977/15,689).
Won Europe Today
We released our European Weekly Summary. Click here to access the report. Key points from it include:
- European markets joined the U.S. indices last week in making fresh all-time highs. Earnings season and
sentiments on rate cuts have fueled the markets. Index ETFs such as EZU, EWG, and EWI are breaking out. - All sectors closed in positive territory other than Energy, which declined marginally. Consumer Cyclical, Retail,
Capital Equipment, and Financials led the gains. On our rotation graph, Technology is leading the pack. Consumer
Cyclical and Capital Equipment are also showing improvement in short-term momentum.
Won Europe Today
On Friday,
- European markets had a mixed session, with six of the 16 indices that we track closing in the red. Most of the
leading indices were breaking out into new all-time highs. We recommend that investors add risk in stocks that are
coming out of proper bases in leading industry groups. - The Stoxx 600, France’s CAC 40, and Germany’s DAX 30 were making new all-time highs. The indices were
trading above their respective 10-DMA. The U.K.’s FTSE 100 faced resistance at its September 2023 highs. - Among sectors, Auto gained more than 1%, while Health Care and Industrial Goods & Services rose 0.5% each.
Real Estate and Utility traded flat. Technology lost 0.3%. - Among the 16 indices that we track, only Austria, Denmark, Finland, the Netherlands, Norway, and Spain closed in
negative territory. Actionable names in the Focus List include Eqt (EQT.SE; EQT:SS), Banco Bpm (BP.IT; BAMI:IM),
Trigano (TRI.FR; TRI:FP), Technogym (TGYM.IT; TGYM:IM), Universal Music Group (UNMG.NL; UMG:NA), and
Straumann Hldg. (STMN.CH; STMN:SW).
