The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq made new alltime highs for a second straight week, continuing to hold trend above their respective 21-DMA (S&P 500: 3,718; Nasdaq: 12,732). The distribution day count stands at four each, with one day expiring on each index next week.
Author: Sandeeep N
European Focus
On Wednesday, the Stoxx 600 ended 2.37% above last Thursday’s close. Of the 17 indices that we cover, 15 are in a Confirmed Uptrend and two in an Uptrend Under Pressure. During the week, we shifted Finland, Ireland, Spain to a Confirmed Uptrend after they reached their respective new rally high.
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 2.5% this week. It is trading along its rising 21-DMA and closed slightly below its 52-week high. It added one distribution day and remains in a Confirmed Uptrend with five distribution days.
Global Focus Emerging
The CSI 300 rose 5.45% on significantly higher volume. The market remains in a Confirmed Uptrend with four distribution days. The index hit new highs for four consecutive sessions but closed with a loss on Friday. The index now faces resistance at new highs at 5,547 (+0.9%), with the next resistance at January 2008’s high of 5,730 (+4.3%).
Global Focus Frontier
Saudia Dairy and Foodstuffs Company (Sadafco) is engaged in the manufacturing and distribution of food products. UHT Milk, tomato paste and Icecreams are its major products.
China A Shares
The CSI 300 advanced 3.4% on slightly higher-than-average volume this holiday-shortened week. The market remains in a Confirmed Uptrend with five distribution days. The index broke above the previous high of 5,090 (-0.5%), with no clear resistance until June 2015’s high (5,380, +5.2%). We look for immediate support of the 21-DMA at ~5,012 (-3.8%), followed by the 50-DMA at 4,934 (-5.3%). Industrial profit and PMI data continue to show an economic recovery. Positive progress in a Sino-Europe investment agreement lifted the market’s mood ahead of the New Year’s holiday. We maintain a positive view of the market as the index holds its trend. We recommend investors follow a disciplined and selective approach and buy ideas breaking out of sound bases with rising relative strength. Avoid and trim ideas that are extended.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed the year at all-time highs and above all major moving averages with limited distribution. Near-term support remains the rising 10- and 21-DMA (S&P 500: 3,689; Nasdaq: 12,612). The distribution day count stands at four and two, respectively, with one day expiring on the S&P 500 next week.
European Focus
On Wednesday, the Stoxx 600 ended 1.08% above last Thursday’s close. Of the 17 indices that we cover, 10 are in a Confirmed Uptrend and seven in an Uptrend Under Pressure. During the week, we shifted Portugal, Germany, Ireland, Switzerland, and the Netherlands to a Confirmed Uptrend after they reached their respective new rally high.
Global Focus Developed
Australia’s ASX All Ordinaries Index was down 1.0% this week. It closed slightly below its 21-DMA. It is in a Confirmed Uptrend with five distribution days with one day set to expire next week.
Global Focus Emerging
The CSI 300 advanced 3.4% on slightly higher-than-average volume this holiday-shortened week. The market remains in a Confirmed Uptrend with five distribution days. The index broke above the previous high of 5,090 (-0.5%), with no clear resistance until June 2015’s high (5,380, +5.2%). We look for immediate support of the 21-DMA at ~5,012 (-3.8%), followed by the 50-DMA at 4,934 (-5.3%).
