Sai Kiran – Page 12 – WILLIAM O'NEIL+CO

The CSI 300 gained 0.84% on higher and about average volume and remains in an Uptrend
Under Pressure with the number of distribution days falling to six from eight. The index retook its
50-DMA (~4,882, -0.4%) with next resistance at the 100-DMA (~4,917, +0.3%) and immediate
support at November 10’s low (4,754, -3.0%). The omicron variant rattled market sentiment
amid re-rising domestic infections. Official manufacturing PMI improved to 50.1 (consensus 49.7)
from 49.2. COVID-testing stocks rallied with pared gains. Liquor stocks were strong as price hikes
brought consumer-related stocks back into focus. Travel-related stocks were hit by re-emerging virus
concerns. Solar companies were pressed by price war worries following price cuts from a silicon
wafer leader. The market is volatile and headline-sensitive with strong sector rotation amid COVID
uncertainties. We are patiently monitoring policy signals and COVID updates before the index
reveals clearer signs of direction. We recommend investors stay disciplined and selective and avoid
chasing highs.

US Focus

Posted on December 3, 2021December 4, 2021 by Sai Kiran

The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq broke below their respective
50-DMA, staging multiple downside reversals to eventually close near the lows of the week. The S&P 500 is
narrowly holding above 100-DMA (4,491) support before price support at ~4,430. The Nasdaq is now 7%
off highs and sitting on its 100-DMA (15,082). The next level of price support is ~14,755 before the rising
200-DMA (14,411). The distribution day count increased to four and three, respectively, with no expiration
next week.

European Focus

Posted on December 3, 2021December 4, 2021 by Sai Kiran

On Thursday, the Stoxx 600 ended 0.48% above last Friday’s close.
Of the 17 indices we cover, one is in a Confirmed Uptrend, five in
a Rally Attempt, nine in an Uptrend Under Pressure, and two in a
Downtrend. The Stoxx 600 was downgraded to an Uptrend Under
Pressure after it breached its 50-DMA on high volume. The U.K.’s
FTSE was downgraded to an Uptrend Under Pressure after it breached
below its 50-DMA and found support at its 200-DMA. France’s CAC
was also downgraded to an Uptrend Under Pressure after it breached its
50-DMA and found support at its 100-DMA. Finland, Ireland, Sweden,
and Luxembourg were upgraded to a Rally Attempt. Belgium was
downgraded to a Downtrend after the index breached all its key moving
averages. Denmark was downgraded to an Uptrend Under Pressure after
the index breached its 50-DMA.