The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 47bps and 94bps, respectively, and reached new
all-time highs. Immediate support is at their 10-DMA (6,536/21,917), with the next level of support at their 21-DMA (6,488/21,696). The
distribution day count stands at four on the S&P 500 and two on the Nasdaq.
Author: Deepashree MC
Won Europe Today
On Friday,
- European markets ended the week higher, despite a minor decline on Friday as investors awaited Fitch’s credit rating decision on France. The Stoxx 600 fell 0.1%, driven by a more than 1% decline in Health Care, partially offset by aerospace and defense stocks, which reached new all-time highs. The index recorded its first weekly gain in three weeks, rising 1%, supported by optimism in global equities amid rising expectations of U.S. interest rate cuts. Investors are focused on the Federal Reserve, with growing expectations for a rate cut next week.
- The Stoxx 600 closed the session 0.1% lower and tested support at its 21-DMA.Next support is at its 10-DMA (-0.9%), followed by its 50-DMA (-1.3%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among key movers on the Stoxx 600, shares of Novartis (NOVN.CH; NOVN:SW) fell 2.8% after Goldman Sachs downgraded the stock, citing increasing pressure from generics. Meanwhile, French voucher companies Pluxee (PLUX.FR; PLX:FP) and Edenred (EDEN.FR; EDEN:FP) fell more than 6% each, following news of a proposed 8% tax on lunch vouchers.
- Among sectors, Utility (+67bps), Technology (+45bps), and Basic Resources (+43bps) were the top gainers, while Health Care (-106bps), Food & Beverages (-78bps), and Automobiles & Parts (-76bps) lagged the most.
- Among major indices, France’s CAC closed flat. The index continued trading above all its key moving averages. Support is at its 21-DMA (-0.3%). Germany’s DAX also closed flat and tested resistance at its 10-DMA. Next resistance is at its 100-DMA (+0.7%). The U.K.’s FTSE ended the session 0.2% lower. Next support is at the confluence of its 10- and 21-DMA (-0.7%).
- Ten of the 16 markets we track closed in the red. One market is in a Confirmed Uptrend, 10 in an Uptrend Under Pressure, and five in a Rally Attempt.
- Belgium recorded its seventh distribution day. The total average distribution day count stood at 4.18.
- Of the 25 European Focus List names, 23 ideas are trading above their 200-DMA, while 21 names are trading above their 50-DMA.
- Actionable names in the Focus List include UCB (UCB.BE; UCB:BB), Airbus (AIRS.FR; AIR:FP), Camurus (CAMX.SE; CAMX:SS), and Bawag (BWGP.AT; BG:AV).
Won Global View
The U.S. market remains in a Confirmed Uptrend. On Friday, the S&P 500 declined 5bps on lower d/d volume, while the Nasdaq rose
45bps. Indices broke out of a sideways range into all-time highs as breadth across leadership remains strong. The first level of support is
at the rising 21-DMA (6,475/21,631). The distribution day count stands at five and three, respectively, with one day set to expire on each
index after today’s close.
Won Europe Today
We released our Weekly Global Laggards Report today. Click here to access the full 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 stocks include Randstad (RAND.NL; RAND:NA), Accor (AC.FR; AC:FP), Evolution (EVOG.SE; EVO:SS), Anheuser-Busch InBev (ABI.BE; ABI:BB), London Stock Exchange Group (LSEG.GB; LSEG:LN), and STMicroelectronics (STM.IT; STMMI:IM).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 was up 85bps yesterday, while the Nasdaq was up 72bps, both on
higher volume. Indices have immediate support at their rising 10-DMA (6,503/21,749), followed by their 21-DMA (6,464/21,579). The
distribution day count remains at five and three, respectively, with one day set to expire on each index Monday after market close.
Won Europe Today
Yesterday,
- Most European markets closed lower, dragged down by weakness in tech stocks. However, Spain’s benchmark index closed higher, led by gains in fashion retailer Inditex (IND.ES; ITX:SM). The aerospace and defense index hit record highs as renewed Russia-Ukraine tensions fueled demand for defense names.
- The Stoxx 600 ended flat for a second consecutive session. The index is testing resistance at its 21-DMA and has support at its 10-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among significant movers on the Stoxx 600, shares of consumer goods maker Associated British Foods (ABF.GB; ABF:LN) declined ~13% after the company provided conservative guidance for H2 FY25.
- Among sectors, Retail (+143bps) and Banks (+96bps) were the strongest gainers, while Technology (-160bps) and Travel and Leisure (-157bps) lagged the most.
- Among major indices, France’s CAC 40 closed 0.1% higher following the appointment of the country’s new Prime Minister. The index reclaimed its 21- and 50-DMA but ended slightly below its 50-DMA. Support is at its 100-DMA. Germany’s DAX 30 posted losses for a second consecutive session and ended 0.4% lower. The index is testing resistance at its declining 10- and 100-DMA. Next support is at its June 23 low. The U.K.’s FTSE 100 pulled back 0.2% and is testing support at its 21-DMA. Itis trading above all its key moving averages.
- Finland was shifted to a Confirmed Uptrend from an Uptrend Under Pressure as the index reclaimed its previous rally high.
- The U.K. recorded its fifth distribution day, while Austria and Belgium logged in their sixth.
- Eight of the 16 indices we track closed in the red. One is in a Confirmed Uptrend, 10 in an Uptrend Under Pressure, and five in a Rally Attempt. The average distribution day count stands at 4.2.
- Of the 25 European Focus List names, 19 ideas are trading above their 50-DMA, while 23 are trading above their 200-DMA.
- Actionable names in the European Focus List are UCB (UCB.BE; UCB:BB), Airbus (AIRS.FR; AIR:FP), and Abb (ABBN.CH; ABBN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 was up 30bps yesterday, while the Nasdaq closed flat, both on higher
volume. Indices have immediate support at their rising 10-DMA (6,485/21,684), followed by their 21-DMA (6,451/21,533). The distribution
day count remains at five and three, respectively.
Won Europe Today
- European markets closed flat, with strength in mining and energy stocks offsetting the impact of political uncertainty in France after the Prime Minister’s confidence vote defeat. The oil and gas index gained 1.3% as crude prices rose following Israel’s strike on Hamas leadership in Qatar. Investors now turn their focus to this week’s ECB rate decision and upcoming U.S. inflation data.
- The Stoxx 600 ended flat. The index is facing resistance at its 21-DMA after retaking its 10-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among significant movers on the Stoxx 600, shares of London-based mining group Anglo American (AAL.GB; AAL:LN) rose 9% as it agreed to acquire Canadian miner Teck Resources (TECK) in a stock-based merger valued at ~$53B for the combined group.
- Among sectors, Mining (+124bps) and Energy (+120bps) were the strongest gainers, while Financial Services (-93bps) and Retail (-84bps) declined the most.
- Among major indices, France’s CAC 40 gained for a second consecutive session and closed 0.2% higher. It closed slightly above its 100-DMA, with resistance at its 50-DMA.Germany’s DAX 30 ended 0.4% lower and is trading in line with its flattish 10- and 100-DMA. The U.K.’s FTSE 100 closed 0.2% higher after finding support at its near-term moving averages.
- Denmark and Sweden recorded their fifth distribution day each.
- Ten of the 16 indices we track closed in the green. Eleven are in an Uptrend Under Pressure and five in a Rally Attempt. The average distribution day count stands at 3.9.
- Of the 25 European Focus List names, 19 ideas are trading above their 50-DMA, while 24 are trading above their 200-DMA.
- Actionable names in the European Focus List are Airbus (AIRS.FR; AIR:FP) and Abb (ABBN.CH; ABBN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~25–35bps yesterday on lower volume. Indices
have immediate support at their rising 10-DMA (6,475/21,639), followed by their 21-DMA (6,443/21,498). The distribution day count stands at five and three, respectively, after one day expired on each index yesterday after market close.
Won Europe Today
We released our European Weekly Summary yesterday. Click here for the full report. Key points from it include:
- The Stoxx 600 declined last week and is testing support at its 50-DMA. It added a distribution day during the period and was downgraded to an Uptrend Under Pressure from a Confirmed Uptrend.
- Among sectors, Health Care and Retail were the top gainers, followed by Consumer Staple, Basic Material, Technology, and Capital Equipment, while Energy showed weakness.
