The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq made new all-time
highs this week, holding trend along their respective 10- and 21-DMA. Distribution stands at one
and six days, respectively, though two days expire on the Nasdaq early next week.
Author: Sandeeep N
European Focus
On Thursday, the Stoxx 600 ended 0.66% below last Friday’s close. Of the 17 indices that we cover, four are in a Confirmed Uptrend, 11 are in an Uptrend Under Pressure, one is in a Rally Attempt, and one in Correction.
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 0.1% this week. The index reclaimed its 200-DMA (+0.3%). It remains in a Confirmed Uptrend with four distribution days after adding one on Thursday.
Global Focus Emerging
The CSI 300 rose 0.30% on lower volume and remains in an Uptrend Under Pressure with four distribution days. The index retook its 21-DMA (4,695, -0.5%), with the next support at its rising 50-DMA (~4,527, -4.0%) and strong resistance at July’s high of 4,878 (+4.3%).
Global Focus Frontier
Savola Group is one of the leading strategic investment holding groups in food and retail sectors across MENAT (Middle East, North Africa and Turkey region).
China A Shares
The CSI 300 fell 0.07% this week, trading range-bound on lower volume and remaining in an Uptrend Under Pressure with four distribution days, adding one this week. July’s macro data suggested a slower recovery in China. PPI fell 2.4% y/y while CPI rose 2.7% y/y, both beating consensus and improving from June. M2 rose 10.7% y/y while total social financing rose RMB 1.69T, both missing expectations and down from last month. Retail sales in July fell 1.1% y/y, missing consensus of 0.1% growth but better than June’s 1.8% y/y drop. Fixed-asset investment fell 1.6% y/y in January‒ July, in line with expectations but up from a 3.1% decline in 1H20. Industrial production grew +4.8% y/y in July, the same pace as June but missing consensus of +5.2%. A U.S.-China meeting to review the phase one trade agreement’s implementation will be held August 15. The CSI retook its 21-DMA (4,675, -0.6%) Friday and the next support level is its 50-DMA (~4,454, -5.3%). We expect the index to stay range-bound before it breaks above July’s high of 4,878 (+3.7%). Stay disciplined amid the recent volatility and focus on quality names coming out of proper bases.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq remain above their respective 10- and 21-DMA with one and five distribution days, respectively. No distribution days will expire next week, but two will fall off the Nasdaq the following week. Resistance remains alltime highs of 3,393 on the S&P 500 and 11,121 on the Nasdaq before its upper channel line.
European Focus
After a week of cautious ascend, markets started giving up gains yesterday. On Thursday, the Stoxx 600 ended 2.47% above last Friday’s close. Today, the market looks set to shed some more weekly gain. Of the 17 indices that we cover, five are in a Confirmed Uptrend, eleven are in an Uptrend Under Pressure, and only one in a Rally Attempt.
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 1.9% this week. The index is trading just below its 200-DMA. It remains in a Confirmed Uptrend with three distribution days. This week, one distribution day expired and a new one was registered.
Global Focus Emerging
The CSI 300 fell 0.07% this week, trading range-bound on lower volume and remaining in an Uptrend Under Pressure with four distribution days, adding one this week. The index retook its 21-DMA (4,675, -0.6%) Friday and the next support level is its 50-DMA (~4,454, -5.3%). We expect the index to stay range-bound before it breaks above July’s high of 4,878 (+3.7%).
