The U.S. market remains in an Uptrend Under Pressure. On Friday, the S&P 500 and Nasdaq were up ~50bps each on lower d/d
volume. They are consolidating along their 21-DMA (6,650/22,566) in a choppy fashion but remain above support at their respective 50
DMA (6,564/22,110). The distribution day count stands at two and six, respectively, with one distribution day set to expire on the Nasdaq
after the close tomorrow.
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 VZ Holding AG (VZN.CH; VZN:SW).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 declined 0.6% on higher d/d volume, recording its second
distribution day, while the Nasdaq fell 0.5% on lower d/d volume. Support is at the rising 50-DMA (6,558/22,081). The distribution day
count stands at two and six, respectively. One distribution day is set to expire on the Nasdaq Tuesday after the close.
Won Europe Today
Yesterday,
- European markets closed higher after LVMH’s strong results reignited optimism in luxury stocks, easing worries over global growth and trade tensions. Strong U.S. bank earnings and remarks from Fed Chair Powell, which reinforced expectations of interest rate cuts later this year, further improved sentiment.
- Among key movers on the Stoxx 600, shares of LVMH (LVMH.FR; MC:FP) surged 12.2%, marking their biggest one-day gain since January, after the company reported better-than-expected Q3 sales, driven by a demand rebound in China. Meanwhile, shares of Hermès (RMS.FR; RMS:FP), Kering (KER.FR; KER:FP), Richemont (CFR.CH; CFR:SW), and Moncler (MONC.IT; MONC:IM) gained 5–8%. Shares of TotalEnergies (FR.FR; FR:FP) advanced 3.7% after signaling higher Q3 earnings on the back of stronger production and refining margins.
- The Stoxx 600 rose 0.6% and tested resistance at its 10-DMA. Next resistance is at its all-time high (+0.9%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Technology (+150bps), Automobiles & Parts (+105bps), and Chemicals (+82bps) were the top gainers, while Travel & Leisure (-146bps), Financial Services (-74bps), and Oil & Gas (-70bps) lagged the most.
- Among major indices, France’s CAC gained 2% on higher volume and reclaimed its 10-DMA. Next resistance is at its March high (+1.6%). Germany’s DAX ended the session 0.2% lower. Support is at its 21-DMA (-0.8%). The U.K.’s FTSE tested resistance at its 10-DMA and fell 0.4%. Next support is at its 21-DMA (-0.5%).
- Ten of the 16 markets we track closed in the green. Ten markets are in a Confirmed Uptrend, two in an Uptrend Under Pressure, and four in a Rally Attempt.
- Italy recorded its fifth distribution day. The average distribution day count stood at 3.
- All 21 European Focus List names are trading above their 200-DMA, while 13 names are trading above their 50-DMA.
- Actionable names in the Focus List include Safran (SGM.FR; SAF:FP).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq rose 40bps and 66bps, respectively. Indices
continue to face resistance at their 10-DMA (6,670/22,667). Support is at the rising 50-DMA (6,552/22,053). The distribution day count is at one and six, respectively.
Won Europe Today
Yesterday,
- European stocks closed lower as renewed U.S.-China trade tensions and a sharp decline in Michelin’s shares weighed on sentiment. Political uncertainty in France added pressure after Prime Minister Sebastien Lecornu moved to delay a controversial pension reform until after 2027 amid growing unrest.
- Among key movers on the Stoxx 600, shares of Swedish telecom equipment maker Ericsson (ERAF.SE; ERICA:SS) rose 18% after the company posted better-than-expected Q3 earnings and downplayed concerns about the potential impact of new U.S. tariffs.
- The Stoxx 600 ended the session 0.4% lower on higher volume. Next support is at its 50-DMA (-1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Telecommunications (+185bps), Utility (+53bps), and Travel & Leisure (+17bps) were the top gainers, while Automobiles & Parts (-243bps), Basic Resources (-158bps), and Health Care (-95bps) lagged the most.
- Among major indices, France’s CAC declined 0.2% and tested resistance at its 21-DMA. Support is at its 50-DMA (-1%), followed by the confluence of its 100- and 200-DMA (-2%). Germany’s DAX closed 0.5% lower. Support is at its 21-DMA (-1%). The U.K.’s FTSE ended the session 0.1% higher and tested resistance at its 10-DMA. Next resistance is at its all-time high (+0.9%).
- Eleven of the 16 markets we track closed in the red. Ten markets are in a Confirmed Uptrend, two in an Uptrend Under Pressure, and four in a Rally Attempt.
- Finland was shifted to a Confirmed Uptrend from an Uptrend Under Pressure after the index reclaimed its previous rally high.
- Italy and the Netherlands recorded their fourth distribution day, while the Stoxx 600 and Belgium logged in their third. Switzerland recorded its first distribution day. The total average distribution day count stood at 2.9.
- All 23 European Focus List names are trading above their 200-DMA, while 13 names are trading above their 50-DMA.
- Actionable names in the Focus List include 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 16bps and 76bps, respectively, on higher
d/d volume. Indices continue to face resistance at the 10-DMA (6,670/22,667). Support is at the rising 50-DMA (6,544/22,018). The
distribution day count stands at one and six, respectively, after the Nasdaq added one yesterday.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the full report. Key points from it include:
- European indices pulled back to their first level of logical support. To remain constructive, the indices should hold above these levels while avoiding a cluster of distribution days. The Stoxx 600 fell ~1.2%, retesting its 21-DMA after hitting a new 52-week high mid-week. The index remains in a Confirmed Uptrend with two distribution days. Support is at the 21-DMA, followed by the 50-DMA (~1% lower).
- All sectors ended lower, except Utility (+1.8%) and Consumer Staple (+1.1%). Consumer Cyclical (-2.3%) lagged the most. Retail, Basic Material, Financial, and Transportation fell 1.0–1.4%. Health Care was nearly flat (-0.1%). Most remaining sectors declined 0.6–0.8%.
- Rotation Chart four-week momentum in longer-term laggards (26-week), such as Health Care, Consumer Cyclical, and Technology, continued to improve, while Consumer Staple and Utility showed accelerating short-term deterioration in momentum.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq rose 1.6% and 2.2%, respectively, on lower d/d
volume. Both indices reclaimed their 21-DMA (6,650/22,544) and face resistance at their 10-DMA (6,675/22,699). Support is now the rising
50-DMA (6,538/21,989). The distribution day count stands at one and five, respectively.
Won Europe Today
On Friday,
- European markets slid sharply, erasing the week’s gains, as fears of a global slowdown were reignited by renewed U.S.-China trade tensions. Investor confidence was shaken by the U.S. President’s decision to restrict shipments of critical software and impose 100% tariffs on Chinese exports in response to Beijing’s restrictions on rare earth minerals. Investors also focused on France, where President Macron rushed to appoint a new prime minister, further escalating the political unrest in the country, amid central bank warnings that the political deadlock is beginning to hinder growth.
- Among key movers on the Stoxx 600, shares of Energiekontor (Xet) (EKTX.DE; EKT:GR) fell 19.4% after the wind and solar park developer slashed its earnings outlook for 2025.
- The Stoxx 600 registered its biggest decline in a month and closed the session 1.3% lower. Next support is at its 21-DMA (-0.7%). 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. Technology (-312bps), Oil & Gas (-291bps), and Basic Resources (-261bps) lagged the most, while Utility (+44bps) and Food & Beverages (+28bps), and Telecommunications (+4bps) were the sole gainers.
- Among major indices, France’s CAC declined 1.5%, breached its 10-DMA, and tested support at its 21-DMA. Next support is at its 50-DMA (-1%). Germany’s DAX also breached its 10-DMA after declining 1.6%. Next support is at its 50-DMA (-1%). The U.K.’s FTSE ended the session 0.9% lower. Support is at its 21-DMA (-0.9%).
- All 16 markets we track closed in the red. Nine markets are in a Confirmed Uptrend, three in an Uptrend Under Pressure, three in a Rally Attempt, and one in a Downtrend.
- Germany was shifted to a Downtrend from a Rally Attempt after the index hit a new low.
- Norway, Sweden, and the Netherlands recorded their sixth, fourth, and third distribution day, respectively. France, Spain, and Belgium recorded their second distribution day, while Portugal logged in its first. The total average distribution day count stood at 3.
- All 23 European Focus List names are trading above their 200-DMA, while 15 names are trading above their 50-DMA.
- Actionable names in the Focus List include Safran (SGM.FR; SAF:FP).
