Author: Veera Manju

Won Europe Today

Posted on by Veera Manju

Yesterday,

  • European markets closed in the red owing to weak economic data from both sides of the Atlantic. Moreover, the U.S.’s plans to impose tariffs on European goods also weighed on market sentiment.
  • In Britain, Parliamentary resistance to Prime Minister Boris Johnson’s Brexit plan is softening, thus causing the pound sterling to appreciate.
  • The Stoxx 600 recovered its early losses to close flat. Travel & Leisure, Media, and Automobiles were the worst performers, while Aerospace & Defense led the gains.
  • Among other major bourses, France’s CAC was down 0.3%. Germany’s market was closed for a holiday. The U.K.’s FTSE was down more than 0.6% owing to the pound’s appreciation. It breached its prior lows and has been downgraded to a Downtrend.
  • The Stoxx 600, France, Germany, Denmark, Switzerland, Italy, Belgium, and the Netherlands closed in negative territory. Sweden was downgraded to an Uptrend Under Pressure after it breached its 100‐DMA.

Won Global View

Posted on by Veera Manju

The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq staged upside reversals, rallying off their respective 200-DMA and closing at the highs of the session. This action is similar to that of May and August following severe selloffs below the 50-DMA. We will now be looking for the indices to hold above yesterday’s lows (S&P 500: 2,855; Nasdaq: 7,700) over the next two days before shifting the market into a Rally Attempt. The earliest that a follow-through day could occur is Tuesday.

Won Global View

Posted on by Veera Manju

The U.S. market has been downgraded to a Downtrend. The S&P 500 and Nasdaq gapped down closing in the lower half of the session for a second straight day. The next level of support is the 200-DMA (S&P 500: 2,837; Nasdaq: 7,708) on both indices. We expect choppy and trendless action to continue over the next week. We recommend using any short-term oversold bounce to reduce risk in ideas breaking price or key moving average support.
Utility is now the only sector trading above its 50-DMA following broad-based selling over the last two days. Energy, Health Care, and Transportation are now trading more than 4% below their respective 50-DMA. Just 49 of 197 O’Neil Industry Groups and 33% of S&P 500 stocks are trading above their respective 50-DMA.

Won Europe Today

Posted on by Veera Manju

Yesterday,

  • European markets closed lower as weak U.S. manufacturing data fueled worries over the strength of the global economy. The pan‐European Stoxx 600 closed 2.70% lower, recording its largest fall in a month. Most sectors were trading in the red, with Construction & Material stocks leading the losses.
  • Among major bourses, the U.K.’s FTSE 100 lost 3.23%, the most among the three bourses. France’s CAC 40 fell 3.12% and Germany’s DAX closed 2.76% down. All three bourses, along with the Stoxx 600, had a distribution day. Other bourses also closed in the red.
  • We downgraded the Stoxx 600, France, Norway, Switzerland, Austria, Italy, Spain, Belgium, and Luxembourg to an Uptrend Under Pressure given the rising and clustering number of Distribution Days (4 for the Stoxx 600).

Won Global View

Posted on by Veera Manju

The U.S. market remains in a Confirmed Uptrend. The S&P held its 50-DMA support, while the Nasdaq is trading just 48bps below that level after yesterday’s rally. Both indices have five distribution days with one expiring on each today.

Won Europe Today

Posted on by Veera Manju

Yesterday,

  • European markets closed in the green as investors continued to keep a tab on the latest developments in the U.S.‐China trade war and economic data coming out of the eurozone.
  • The Stoxx 600 rose 0.34%, with almost all sectors ending in the green. Banks and Construction & Materials were leading the index, while Basic Resources dragged the index down.
  • Among other indices, France’s CAC and Germany’s DAX ended higher, while the U.K.’s FTSE was trading in the red.
  • Denmark and Austria were the only countries to close in negative territory.

Won Global View

Posted on by Veera Manju

The U.S. market remains in a Confirmed Uptrend. The S&P 500 pulled back to its 50-DMA last week, picking up three distribution days in the last six sessions. Should the index close below its 50-DMA in the coming days, we will shift the market status to an Uptrend Under Pressure. The Nasdaq suffered a bigger decline, closing below both its 50- and 100-DMA after picking up three distribution days in the last six days. On further weakness, it is likely to trade down toward its rising 200-DMA (7,695 (-3.2%)).

Won Europe Today

Posted on by Veera Manju

Yesterday,

  • European markets closed in the green despite Brexit uncertainty and a drop in the eurozone business confidence data. It was primarily due to a weakness in the pound and increased hopes that Germany will increase public spending to boost growth.
  • The Stoxx 600 was up 0.40% and remains in a Confirmed Uptrend, with Banks, Autos, and Financial Services leading the index.
  • Among other major Indices, France’s CAC and Germany’s DAX rose 0.36% and 0.75%, respectively, while the U.K.’s pound‐sensitive and export‐heavy FTSE gained more than 1%, all on lower volume.
  • Denmark and Luxembourg were the only countries to close in negative territory.

Won Global View

Posted on by Veera Manju

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back in lower volume yesterday, avoiding distribution. The distribution count fell to five days on both indices, with one additional day expiring on both today. Overall, the S&P 500 remains rangebound with support at the 50-DMA and resistance at all-time highs.

Won Europe Today

Posted on by Veera Manju

Yesterday,

  • European markets closed in the green amid hopes that the U.S. and China may be close to a trade deal following President Donald Trump’s latest comments. Strong German consumer confidence survey data also contributed to the positive sentiment.
  • The Stoxx 600 was up 0.68%, with most sectors registering gains. Financial Services and Utilities were the biggest gainers, with the latter rising more than 1.9%, while Travel & Leisure dragged the index down.
  • Among other major indices, France’s CAC climbed 0.66% on lower volume, while Germany’s DAX was up 0.44% on higher volume. The U.K.’s FTSE rose 0.84% following the pound’s weakness due to Brexit concerns.
  • Austria was the only country to close in negative territory, on weak manufacturing PMI data.