The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to act well, trading above multiple moving average support levels with a low number of distribution days. Near-term support remains the rising 10 and 21-DMA and distribution still stands at one day on the S&P 500 and two on the Nasdaq.
Author: Sandeeep N
European Focus
On Thursday, the Stoxx 600 closed 2% above last Friday’s close and is in a Confirmed Uptrend. During the week, we moved France, Denmark, and the Netherlands to a Confirmed Uptrend after the indices registered new highs. Of the 17 indices we cover, 16 are in a Confirmed Uptrend and one is in a Rally Attempt.
Global Focus Developed
Australia’s ASX All Ordinaries Index was up 1.98% this week. The index has three distribution days and remains in a Confirmed Uptrend.
Global Focus Emerging
The CSI 300 gained 1.77% for the week on slightly increased volume. The market remains in a Confirmed Uptrend with one distribution day. The leaders of the U.S. and China agreed to resume trade talks, and the U.S. agreed to suspend new tariffs on Chinese goods, causing the market to gap up on increased volume Monday but pull back since then on shrinking volume. The CSI 300 faces great pressure after breaking through the gap, with the next immediate resistance at ~3,942 then at rally highs of ~4,126. Immediate support is at ~3,854 and then ~3,715. Chinese macro data for June will be released next week, and earnings season will start soon, so we expect the market to focus on fundamentals.
Global Focus Frontier
Al Rajhi Bank is world’s leading Islamic bank with total assets of SAR 356B. The bank continues to grow by expanding its loan and deposit market share.
China A Shares
The CSI 300 fell 0.22% for the week on lower volume. The A-share market remains in a Confirmed Uptrend with two distribution days. We saw range-bound action in the market this week as investors await the Trump-Xi meeting at the G20, scheduled for this weekend. Uncertainty weighed on market sentiment and investors remain cautious. The CSI 300 faces resistance of the upper gap at ~3,856, and our conviction will increase if the index can break through it on increased volume. The lower gap at ~3,556 is the next level of support. Economic data showed improvement in industrial companies’ year-over-year profit growth in May, a sign that China’s economy is gradually stabilizing. Trade remains a big uncertainty, so investors are advised to stay patient and gradually buy actionable growth ideas as they break out from sound bases or the 50-DMA level. As the market enters the earnings preannouncement season, investors should watch ideas with high or better-than-expected earnings growth.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed slightly lower this week, but both continue to hold trend above all major moving averages. The 21- DMA has risen above the 50-DMA on both indices, now acting as our primary level of support. Resistance is all-time highs on the S&P 500 at 2,964, while resistance on the Nasdaq is the June 20 intraday high of 8,088. Distribution remains low at one day on the S&P 500 and two on the Nasdaq.
European Focus
On Thursday, the Stoxx 600 was up 0.01%, doing little to erase losses from earlier in the week. The index was down 0.65% from last Friday’s close through Thursday. Today, the index is trading constructively along with other major markets in the region, with hopes pinned on the U.S.-China meeting at the G20 summit.
Global Focus Developed
Australia’s ASX All Ordinaries Index was down 0.52% this week. The index added one distribution day, taking its total to three. It remains in a Confirmed Uptrend.
Global Focus Emerging
The CSI 300 fell 0.22% for the week on lower volume. The A-share market remains in a Confirmed Uptrend with two distribution days. We saw rangebound action in the market this week as investors await the Trump-Xi meeting at the G20, scheduled for this weekend. Uncertainty weighed on market sentiment and investors remain cautious. The CSI 300 faces resistance of the upper gap at ~3,856, and our conviction will increase if the index can break through it on increased volume. The lower gap at ~3,556 is the next level of support. Economic data showed improvement in industrial companies’ year-over-year profit growth in May, a sign that China’s economy is gradually stabilizing. Trade remains a big uncertainty, so investors are advised to stay patient and gradually buy actionable growth ideas as they break out from sound bases or the 50-DMA level. As the market enters the earnings preannouncement season, investors should watch ideas with high or better-than-expected earnings growth.
