Won Europe Today

Yesterday,

  • European markets had a positive session as 14 of the 16 indices that we track closed in the green. Most of the
    leading indices have found support at their rising 10-DMA. We recommend that investors add risk in stocks that are coming out of proper bases in leading industry groups.
  • The Stoxx 600 gained 0.6% and found support at its rising 10-DMA. Its distribution day count stands at four. Among other major indices, France’s CAC 40 formed an upside reversal, trending upward along its rising 10-DMA.
    Germany’s DAX and the U.K.’s FTSE 100 bounced off their respective rising 10-DMA.
  • Among sectors, Oil & Gas gained 2%, while Banks and Health Care rose 0.5%. Utility declined 1%, while Food &
    Beverage traded flat. Belgium and Switzerland closed in negative territory, with Switzerland recording its fifth distribution day.
  • Actionable names in the Focus List include Brunello Cucinelli (BC.IT; BC:IM), Bae Systems (BA.GB; BA/:LN), Vat Group (VACN.CH; VACN:SW), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), Trigano (TRI.FR; TRI:FP), Nemetschek (Xet) (NEMX.DE; NEM:GR), and Saab B (SAAB.SE; SAABB:SS).

Won Global View

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 20–30bps on higher d/d volume, thus registering a distribution day each. Immediate support for both indices is at their rising 10-DMA (4,897/15,430), followed by their 21-DMA (4,848/15,259). The distribution day count for both indices stands at six and three, respectively, with one day expiring on each index today after close.

Won Europe Today

We released our European Weekly Summary yesterday. Click here to access the report. Key points from it
include:

  • European markets had a flattish week. The markets took a pause last week, with marginal moves on a weekly
    close-to-close basis.
  • The indices are pulling back to their short-term moving averages post their rally in January.
  • Most sectors closed in the green. Technology and Consumer Cyclical led the gains, while Transportation led the
    decline. On our rotation graph, Technology is leading the pack, showing improvement in short-term momentum.

Won Global View

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up 1.4% and 1.1%, respectively, last week. The indices rose for a fourth week and for the thirteenth time in 14 weeks. Indices bounced from support at respective 21-DMA (4,840/15,228) and once again made new 52-week (S&P 500 made all-time) highs to end the week. The distribution day count for both indices remains at six and three, respectively. However, four distribution days on the S&P 500 and two on the Nasdaq are set to expire this week.

Won Europe Today

On Friday,

  • European markets trimmed their gains to close flat. The markets took a pause last week, with marginal moves on a weekly close-to-close basis. The indices are pulling back to their short-term moving averages post their rally in January. Stronger non-farm payroll data in the U.S. added uncertainty regarding the pace of rate cuts. Among sectors, Automobile and Banks led the gains, while Oil & Gas and Basic Materials declined the most.
  • We recommend that investors add risk in stocks that are part of leading industry groups and are breaking out of proper bases with a strong and rising RS line.
  • The Stoxx 600 closed flat. The index is likely to pull back to its short-term moving averages post its rally in January. Support levels: 21-DMA (1.4% below), 50-DMA (2.2% below), and 200-DMA (5% lower). Next levels of resistance: 490 (1.3% above) and 495 (2.3% above).
  • Among major indices, Germany’s DAX, France’s CAC, and the U.K.’s FTSE are trading above all their key moving averages.
  • Most of the 16 indices we track closed marginally on either side. Seven indices are in a Confirmed Uptrend, four in an Uptrend Under Pressure, two in a Rally Attempt, and three in a Downtrend. The average distribution day count is currently at 5.2.
  • Actionable names in the Focus List include Brunello Cucinelli (BC.IT; BC:IM), Bae Systems (BA.GB; BA/:LN), Vat Group (VACN.CH; VACN:SW), Novo Nordisk ‘B’ (NON.DK; NOVOB:DC), Trigano (TRI.FR; TRI:FP), Nemetschek (Xet) (NEMX.DE; NEM:GR), and Saab B (SAAB.SE; SAABB:SS).

Won Global View

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~125bps each and reclaimed their 10-DMA on lower volume. The 21-DMA (4,826/15,185) serves as a key level of support for both indices, with the next level at their 50-DMA (4,718/14,797). The distribution day count for both indices remains at six and three, respectively.

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 underweight as they may be
vulnerable to further downside risk and underperformance. Stocks in Europe include Schroders (SDR.GB; SDR:LN),
Pets at Home (PETS.GB; PETS:LN), and STMicroelctronics (STM.IT; STMMI:IM).

Won Global View

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined ~160–225bps, breaching their 10-DMA on higher d/d volume, and registered a distribution day each. The S&P 500 has immediate support at its 21-DMA (4,819), followed by its 50-DMA (4,710). The Nasdaq is trading at its 21-DMA (15,168) with immediate support at the 50-DMA (14,773). The distribution day count for both indices stands at six and three, respectively.