The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq undercut last week’s lows. The earliest a follow-through day can now occur is Monday. Primary resistance remains the now flattening 50-DMA (S&P 500: 4,020; Nasdaq: 12,029), though all other key moving averages are rolling and will cross below that level in the coming days. There is no clear support before June lows (S&P 500: 3,636; Nasdaq: 10,565).
Author: Vidhya M
Won Europe Today
Yesterday,
European markets had a mixed session with most indices closing with flat to marginal gains. Among the 17 indices that we track, 12 were shifted to a Rally Attempt after they held their recent lows. However, we recommend that investors avoid adding any new risk.
The Stoxx 600 gained 0.2% on higher volume. It has been shifted to a Rally Attempt after it held on to its September 1 low. Among sectors, Autos, Chemical, and Media stocks led the bulls, while Oil & Gas stocks lost 2.5%. Health Care and Telecommunication stocks were flat.
Among other major indices, France’s CAC, Germany’s DAX, and the U.K.’s FTSE 100 have also been shifted to a Rally Attempt after they held their respective lows for three days. Norway recorded its fourth distribution day. The index breached its 50-DMA and was shifted to an Uptrend Under Pressure. Portugal recorded its sixth distribution day.
Actionable names in our Focus List include Ox2 (OX2.SE; OX2:SS), Edp Renovaveis (EDPR.PT; EDPR:PL),
Edenred (EDEN.FR; EDEN:FP), Lvmh (LVMH.FR; MC:FP), Relx (REL.GB; REL:LN), Wolters Kluwer (WSG.NL; WKL:NA), Compass Group (CPG.GB; CPG:LN), Neoen (NEOP.FR; NEOEN:FP), and Solaria Energia Y Medio Ambiente (SEM.ES; SLR:SM).
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq closed below their respective 50-DMA (S&P 500: 4,020; Nasdaq: 12,030) last Tuesday, resulting in a downgrade of the market status. That level is now acting as near-term resistance, though multiple moving averages are set to cross below in the coming days. The next level of support is ~3,900 and ~11,500, respectively. Should this level break, there is no clear support before June lows (S&P 500: 3,636; Nasdaq: 10,565). The earliest a follow-through day can occur is Wednesday, assuming last week’s lows hold.
Won Europe Today
We released our Weekly European Summary yesterday, click here to access it. Key points from it include:
The Stoxx 600 was shifted to a Downtrend last week, after breaching its key support levels. European majors
continued their fall last week, breaking below their prior support levels. Hawkish stance by the central bank to
combat inflation and soaring energy prices weigh on the markets. Financial was the only sector in the green last week while all other sectors closed in the red. On our rotation chart, Energy and Transportation are showing improvement in the short-term momentum, while all other sectors are taking a pause in their short-term momentum (over four weeks).
Won Europe Today
On Friday,
European markets had a strong day as indices found support at their March lows. However, concerns regarding high inflation and monetary tightening continue to weigh on the markets. We recommend that investors be very cautious while adding any new risk.
The Stoxx 600 gained more than 2% on high volume. Almost all sectors closed in positive territory, with Auto stocks gaining nearly 4%. Among other major indices, France’s CAC found support at 6,000 level, Germany’s DAX found support at 12,600 level, while the U.K.’s FTSE found support at 7,150 level.
All the 17 indices that we track in Europe closed in the green. Actionable names in our Focus List include Ox2
(OX2.SE; OX2:SS), Edp Renovaveis (EDPR.PT; EDPR:PL), Edenred (EDEN.FR; EDEN:FP), Lvmh (LVMH.FR; MC:FP), Relx (REL.GB; REL:LN), Wolters Kluwer (WSG.NL; WKL:NA), Compass Group (CPG.GB; CPG:LN), Neoen (NEOP.FR; NEOEN:FP), and Solaria Energia Y Medio Ambiente (SEM.ES; SLR:SM).
Won Global View
The U.S. market remains in a Downtrend. The S&P 500 and Nasdaq staged upside reversals, finding support at ~3,900 and ~11,600, respectively. Near-term resistance remains the 50-DMA (S&P 500: 4,018; Nasdaq: 12,022), though all key moving averages are rolling over and will cross below the 50-DMA in the coming days. The earliest a follow-through day can occur is Wednesday.
Won Europe Today
We released our Weekly Global Laggards Report today. 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 include Brenntag (BNRX.DE; BNR:GR), Eiffage (FGR.FR; FGR:FP), Whitbread (WTB.GB; WTB:LN), Orsted (DEN.DK; ORSTED:DC), and Tesco (TSCO.GB; TSCO:LN).
Won Global View
The U.S. market is in a Downtrend. The S&P 500 and Nasdaq tested but faded off 50-DMA resistance (S&P 500: 4,013; Nasdaq: 12,007) and closed at session lows. Indices are trading below all moving averages, with the next level of price support at ~3,900 and 11,600, respectively.
Won Europe Today
Yesterday,
- European markets had another weak day with most indices recording distribution days, breaching key support levels, and being downgraded. Markets are touching their March 2022 lows. We recommend that investors be cautious while adding any new risk.
- The Stoxx 600 declined 1% on heavy volume and has been downgraded to a Downtrend. It is testing its March 2022 support levels. Among sectors, Utilities lost more than 1% while Health Care and yield-sensitive Technology shares were down 90bps and 80bps, respectively.
- Among other major indices, France’s CAC and Germany’s DAX are testing their March 2022 lows, while the U.K.’s FTSE 100 is testing its May 2022 lows.
- Among the 17 indices that we track in Europe, Austria, Ireland, and Norway closed in positive territory. Denmark, France, Italy, and the U.K. recorded distribution days while the Stoxx 600, the Netherlands, and Sweden were downgraded to a Downtrend.
- Actionable names in the Focus List include Ox2 (OX2.SE; OX2:SS), Edp Renovaveis (EDPR.PT;
EDPR:PL), Edenred (EDEN.FR; EDEN:FP), Lvmh (LVMH.FR; MC:FP), Relx (REL.GB; REL:LN), Wolters Kluwer (WSG.NL; WKL:NA), Compass Group (CPG.GB; CPG:LN), Neoen (NEOP.FR; NEOEN:FP), Ipsos (IPS.FR; IPS:FP), Rwe (Xet) (RWEX.DE; RWE:GR), and Solaria Energia Y Medio Ambiente (SEM.ES; SLR:SM).
Won Europe Today
Yesterday,
- European markets had another weak session. Most indices closed negative to flat after facing resistance at their prior support levels. The clustering of distribution days in recent sessions indicates that market weakness would continue. We recommend that investors remain cautious while adding any new risk.
- The Stoxx 600 recorded its sixth distribution day. The index continues to face resistance along its declining 50- DMA. Among sectors, bulls were led by Banks, which gained nearly 1%. Autos gained more than 0.6%, while Travel & Leisure lost 0.5%.
- Among other major indices, France’s CAC formed a downside reversal after finding resistance at its 100-DMA. Germany’s DAX was able to hold on to its August 29 lows despite finding resistance at its 50-DMA. The U.K.’s FTSE 100 broke below its 100-DMA.
- Among the 17 indices we track in Europe, Finland, Germany, and Sweden closed in positive territory. The Stoxx 600, the Netherlands, Denmark, and Portugal recorded a distribution day each.
- Actionable names in the Focus List include Ox2 (OX2.SE; OX2:SS), Edp Renovaveis (EDPR.PT; EDPR:PL), Edenred (EDEN.FR; EDEN:FP), Lvmh (LVMH.FR; MC:FP), Relx (REL.GB; REL:LN), Wolters Kluwer (WSG.NL; WKL:NA), Compass Group (CPG.GB; CPG:LN), Neoen (NEOP.FR; NEOEN:FP), Ipsos (IPS.FR; IPS:FP), Rwe (Xet) (RWEX.DE; RWE:GR), and Solaria Energia Y Medio Ambiente (SEM.ES; SLR:SM).
