On Thursday, the Stoxx 600 closed 0.83% above last Friday’s close. Of the 17 indices that we cover, seven are in a Confirmed Uptrend, including the U.K. and France, and the remaining are in an Uptrend Under Pressure. Germany, the Stoxx 600, Ireland, Finland, Sweden, Belgium, the Netherlands, and Luxembourg were downgraded to an Uptrend Under Pressure after they breached their respective 21- DMA. Switzerland and Italy were also downgraded to an Uptrend Under Pressure after they breached their 50-DMA. Ireland was upgraded to a Confirmed Uptrend after it reclaimed its prior high
Author: Midhun Parameswaran
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 0.5% this week. It is trading close to its 52-week high with support at its 21-DMA (-0.5%). The index is in a Confirmed Uptrend with four distribution days after adding one distribution day this week.
Global Focus Emerging
The CSI 300 fell 2.49% on higher volume this week. The market remains in a Confirmed Uptrend with the number of distribution days rising to three. The index fell below its 21-DMA (5,070, +0.2%) and is testing support at its 200-DMA (4,993, -0.1%), with next support at ~4,900 (-1.9%). Immediate resistance lies at its 21- DMA (5,062, +1.3%) and the declining 50-DMA (5,120, +2.5%).
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.
China A Shares
The CSI 300 fell 0.23% on slightly higher but below-average volume this week. The market remains in a Confirmed Uptrend with the number of distribution days rising to two. The index trended upward and challenged resistance at its 50-DMA (~5,146, +0.4%), with next resistance at its 100- DMA (5,223, +1.9%). Immediate support lies at the 21-DMA (5,072, -1.0%). China’s official PMI was 51.1 in April, missing consensus of 51.8 and lower than March’s 51.9, indicating slower recovery but still above the break-even level of 50. Q1 industrial profits increased 137% to RMB 1.83T and 50.2% over Q1 2019. Heath Care remained strong due to concerns about surging COVID-19 cases in India. The steel sector underperformed as the government lowered import taxes and lifted export taxes to increase domestic supply. Market sentiment was boosted by strong FY20 and Q1 FY21 corporate earnings. Be selective and focus on companies with strong earnings and improving technical profiles. China’s market will be closed Monday to Wednesday next week due to the Labor Day holiday.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 made another new all-time high Thursday, moving back above its upper channel line and more than 5% above its 50-DMA before pulling back from extended levels Friday. The Nasdaq briefly touched a new all-time intraday high Thursday, before also pulling back on Friday. We continue to view short-term support at the rising 21-DMA for both indices. The distribution day count remains low at three days each, though there will be no expiration for two full weeks.
European Focus
On Thursday, the Stoxx 600 ended 0.06% below last Friday’s close. Of the 17 indices we cover, 16 are in a Confirmed Uptrend and one in an Uptrend Under Pressure. This week, we shifted Spain to a Confirmed Uptrend after it reclaimed its previous high.
Global Focus Developed
Australia’s ASX All Ordinaries Index declined 0.4% this week. It is trading close to its 52-week high with support at its 21-DMA (-0.7%). The index is in a Confirmed Uptrend with four distribution days after adding one distribution day this week. One distribution day expires next week.
Global Focus Emerging
The CSI 300 fell 0.23% on slightly higher but below-average volume this week. The market remains in a Confirmed Uptrend with the number of distribution days rising to two. The index trended upward and challenged resistance at its 50- DMA (~5,146, +0.4%), with next resistance at its 100-DMA (5,223, +1.9%). Immediate support lies at the 21-DMA (5,072, -1.0%).
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.
