On Thursday, the Stoxx 600 ended 1.04% above last Friday’s close. Of the 17 indices we cover, 15 are in a Confirmed Uptrend and two in an Uptrend Under Pressure. This week, we upgraded Germany, the U.K., Austria, Ireland, and Italy to a Confirmed Uptrend after they reclaimed their prior rally high.
Author: Midhun Parameswaran
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 1.2% this week. The index closed at a new 52-week high and has immediate support along its 21-DMA (-2%). It is in a Confirmed Uptrend and has three distribution days. One distribution day will expire next week.
Global Focus Emerging
The CSI 300 gained 0.5% on lower but above average volume this week. The market remains in a Confirmed Uptrend with one distribution day. The index ended below the short-term 5- (4,993, +1.0%) and 21-DMA (~4,975, +0.6%), pulling back off its weekly high. Support is at July 28’s low (~4,664, -5.7%) and resistance is at ~5,100 (+3.1%), the lower edge of the consolidation range since June this year and where the 50-, 100- and 200-DMA sit.
Global Focus Frontier
o Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and is a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive its growth.
China A Shares
The CSI 300 gained 2.29% on lower and above average volume this week. The market was shifted to a Confirmed Uptrend on a day four follow-through Monday. The index breached its 5-DMA (~4,943, +0.4%) with next support at July 28’s low (~4,664, -5.2%). Immediate resistance is at the 21-DMA (~5,005, +1.7%). July’s official manufacturing PMI was 50.4, below the previous 50.9 and consensus of 51.1. Private Caixin manufacturing PMI dropped to 50.3, a low since April 2020, from 51.3. Regulatory concerns emerged from the education sector and spread as reports from state media rattled sentiment, targeting online gaming, liquor, e-cigarettes, and infant formula. Defense stocks led the gains on improving earnings supported by rising demand from the country’s militarybuilding activities, with a boost from the Biden administration’s arms sale to Taiwan. Auto stocks continued outperforming on strong earnings and sales numbers, with Biden’s EV policy as a new catalyst. Health care led the losses on concerns about centralized procurement of medical equipment amid resurging domestic COVID cases. Upward momentum remained weak. We would like to see the CSI 300 hold or trade around the 5-DMA to be constructive. Investors should stay patient amid increasing volatility on earnings and headlines. Focus on stocks with sound fundamentals and strong technical profiles. Inflation and financial data will be released next week
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed the week at or near new highs and above all major moving averages including near-term support along the 10- and 21-DMA. Both indices avoided distribution this week, keeping the count at six and three, respectively, with two days expiring on the S&P 500 next week.
European Focus
On Thursday, the Stoxx 600 closed 1.72% above last Friday’s close. We upgraded France and Belgium to a Confirmed Uptrend after both the indices made new highs. Currently, 10 indices are in a Confirmed Uptrend and seven are in an Uptrend Under Pressure. The average distribution day count stands at 5.53.
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 1.9% this week. The index is trading close to its 52-week high and has immediate support along its 21-DMA (-1.6%). It is in a Confirmed Uptrend and has five distribution days. Two distribution days expire next week.
Global Focus Emerging
The CSI 300 gained 2.29% on lower and above average volume this week. The market was shifted to a Confirmed Uptrend on a day four follow-through Monday. The index breached its 5-DMA (~4,943, +0.4%) with next support at July 28’s low (~4,664, -5.2%). Immediate resistance is at the 21-DMA (~5,005, +1.7%).
Global Focus Frontier
Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) is one of the top banks in Vietnam and is a constituent of the VN30 Index. Its industry-leading growth and key financial ratios, along with its exposure to the consumer finance industry, will drive its growth.
