The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq bounced higher on below average volume after last week’s broad-based selloff. The distribution day count remains at three days on the Nasdaq and two on the S&P 500. The next level of support is the rising 200-DMA (S&P 500: 2,803; Nasdaq: 7,594).
Author: Veera Manju
Won Europe Today
Yesterday, European markets closed mixed as trade-related worries eased between the U.S. and China. Italian markets rallied after opposition Democratic Party and the anti-establishment 5-Star Movement were nearing an agreement to form a new government. France’s CAC and Germany’s DAX were up 0.45% and 0.40%, respectively. The U.K.’s FTSE 100 was closed.
Won Global View
The U.S. market is in an Uptrend Under Pressure. The S&P 500 and Nasdaq sold off more than 2.6% Friday after trading slightly below resistance at the 50-DMA for several sessions. Each index picked up a distribution day; the count increased to three days on the Nasdaq and two on the S&P 500. Indices are poised to re-test August 5 lows, which is followed by support at the rising 200-DMA.
Won Europe Today
We released our European Weekly summary on Saturday (please click here to access the report).
On Friday, European markets closed lower due to Trump’s furious reaction to China’s latest imposition of tariffs on U.S goods and lack of clarity on the Fed’s rate outlook. France’s CAC and Germany’s DAX were down 1.14% and 1.15%, respectively. The U.K.’s FTSE 100 fell 0.47%.
- The Stoxx 600 was down 0.79%, but managed to bag its first weekly gain in the last four weeks (weekly gain of 0.5%).
- Trade-sensitive sectors – Automobile and Parts, Mining and Technology – were the biggest decliners while defensive real estate stocks closed in positive territory.
- All countries closed in negative territory.
- We added one distribution day each to Ireland and Switzerland.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq continue to trade slightly below their respective 50-DMA (S&P 500: 2,947 Nasdaq: 8,052). Yesterday, the Nasdaq pulled back and picked up a distribution day in the process, increasing the total count to two distribution days. The S&P 500 has only one distribution day. Over the last week, price action across both indices has been rangebound on below-than-average volume.
Won Europe Today
We released our weekly Global Laggards report yesterday (please click here to access the report). The stocks highlighted in this report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further downside risk and underperformance. European names highlighted this week includeTesco (TSCO.GB; TSCO:LN) and Hexagon B (EKBF.SE; HEXAB:SS).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq gapped up at the open and held on to the majority of the session’s gains, albeit on below average volume. The 50-DMA (S&P 500: 2,946 Nasdaq: 8,048) continues to serve as upside resistance as both indices consolidate below this key moving average.
Won Europe Today
Yesterday,
- European markets closed higher with the exception of Luxembourg. The Stoxx 600 was up 1.21% with all sectors in the green – Technology, Autos, and Industrials led the gains.
- Autos sector was also boosted by the jump in Renault (RENU.FR; RNO:FP) and Fiat Chrysler (FCA.IT; FCA:IM) shares after an Italian newspaper suggested that merger talks were back on the table.
- Germany’s DAX rose 1.30%, France’s CAC 40 gained 1.70%, and the U.K.’s FTSE 100 increased 1.11%, all on lower volume.
- We upgraded Ireland and Austria to a Confirmed Uptrend after a follow-through day in those markets.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq pulled back off their respective 50-DMA yesterday, but avoided distribution. The count remains at one day each. Overall action remains choppy with no clear trend yet to develop. Resistance remains the rising 50-DMA (S&P 500: 2,946 Nasdaq: 8,044).
Won Europe Today
Yesterday,
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European markets, with the exception of Denmark and Luxembourg, closed lower after an upbeat start, as Italian Premier Giuseppe Conte resigned, escalating the political uncertainty in the region. The Stoxx 600 closed 0.68% lower, with Utilities, Basic Resources, and Real Estate stocks losing the most. Almost all sectors were in the red.
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The U.K.’s FTSE 100 lost 0.90%. Germany’s DAX closed 0.55% down while France’s CAC 40 fell 0.50%, on lower volume.
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We moved the market status for Germany, the U.K., the Stoxx600, Ireland, Finland, Norway, Sweden, Austria, Italy, Portugal, Spain, Belgium, the Netherlands, and Luxembourg to a Rally Attempt after a third consecutive day of holding above the previous lows.
