The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up 20–45bps yesterday on higher volume. Indices
have immediate support at their rising 10-DMA (6,466/21,586), followed by their 21-DMA (6,436/21,459). The distribution day count
remains at six and four, respectively, with one day set to expire on each index today after market close.
Author: Deepashree MC
Won Europe Today
On Friday,
- European markets gave up early gains to close lower, weighed down by energy and financial stocks, as softer-than-expected U.S. payrolls data fueled concerns over the health of the country’s economy. The sharp slowdown in August job growth data confirmed a cooling labor market and strengthened expectations for a Fed rate cut this month.
- The Stoxx 600 closed 0.1% lower after having gained in its past two sessions. The index is testing resistance at its 10- and 21-DMA. Near-term support is at its 50-DMA, followed by its 100-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 Swedish industrial technology group Hexagon B (EKBF.SE; HEXAB:SS) rose more than 7% after the company announced plans to sell its design and engineering business wing to Cadence (CDNS).
- Among sectors, Mining (+113bps) and Travel and Leisure (+97bps) led the gains, while Energy (-179bps) and Banks (-114bps) lagged the most.
- Among major indices, France’s CAC 40 declined 0.3% and is testing resistance at its 10-DMA. Support is at its 50-DMA.Germany’s DAX 30 broke below its 100-DMA and closed 0.6% lower. Next support is at its June 19 low. The U.K.’s FTSE 100 ended the session flat and is testing support at its near-term moving averages.
- Denmark and Spain recorded their fourth distribution day. Norway and Austria logged in their second and fifth distribution day, respectively.
- France was shifted to a Rally Attempt from a Downtrend after recording Day 3 of its rally attempt.
- Denmark and Spain were shifted to an Uptrend Under Pressure from a Confirmed Uptrend.
- Twelve of the 16 indices we track closed in the red. Eleven are in an Uptrend Under Pressure, four in a Rally Attempt, and one in a Downtrend. The average distribution day count stands at 3.8.
- Of the 25 European Focus List names, 18 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), Abb (ABBN.CH; ABBN:SW), UCB (UCB.BE; UCB:BB), 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 ~30bps on higher d/d volume after facing
resistance near 6,500. Meanwhile, the Nasdaq closed almost flat, with the next level of resistance near its August highs (~21,804). Support
is near their 10-DMA (6,466/21,541), followed by their rising 21-DMA (6,431/21,425). The distribution day count currently stands at six and
four, respectively.
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 Adidas (ADSX.DE; ADS:GR), STMicroelectronics (STM.IT; STMMI:IM), and Shurgard Self Storage (SHUR.BE; SHUR:BB).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 rose 84bps, tracking its 10-DMA (6,455), and is nearing resistance
near 6,500. The Nasdaq jumped ~1%, with the next level of resistance near its August highs (~21,800). Support is near their 10-DMA
(6,455/21,503), followed by their rising 21-DMA (6,426/21,398). The distribution day count currently stands at five and four, respectively,
after one day expired on the S&P 500 yesterday.
Won Europe Today
Yesterday,
- European markets closed higher, with the Stoxx 600 up 0.7%, supported by Health Care and Basic Resources. Investor sentiment was lifted by a spike in copper prices, which was fueled by growing expectations of a possible U.S. rate cut later in the month. Investors are now focusing on U.S. jobs report due Friday for additional policy cues.
- Among key movers on the Stoxx 600, shares of Adidas (ADSX.DE; ADS:GR) gained 4.8% following Jefferies’ upgrade to “buy” and J.P. Morgan’s inclusion on its positive catalyst watchlist. Meanwhile, shares of Swiss Life (SLHN.CH; SLHN:SW) declined 1.2% after the company posted a decline in H1 profit due to increased tax costs.
- The Stoxx 600 gained 0.7% and tested resistance at its 50-DMA. Next resistance is at its 21-DMA (+1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Retail (+168bps), Health Care (+165bps), and Basic Resources (+157bps) were the top gainers, while Oil & Gas (-76bps), Telecommunications (-52bps), and Food & Beverage (-14bps) lagged the most.
- Among major indices, France’s CAC rose 0.9%, reclaimed its 200-DMA, and tested resistance at its 100-DMA. Next resistance is at its declining 10-DMA (+0.4%). Germany’s DAX gained 0.4% and tested resistance at its 100-DMA. Next resistance is at its 10-DMA (+1.5%). The U.K.’s FTSE closed 0.7% higher and tested resistance its 21-DMA. Next resistance is at its 10-DMA (+0.5%).
- Fourteen of the 16 markets we track closed in the green. Two markets are in a Confirmed Uptrend, nine in an Uptrend Under Pressure, three in a Rally Attempt, and two are in a Downtrend.
- Of the 26 European Focus List names, 25 ideas are trading above their 200-DMA, while15 names are trading above their 50-DMA.
- Actionable names in the Focus List include Argenx (ARGX.BE; ARGX:BB), UCB (UCB.BE; UCB:BB), and ABB (ABBN.CH; ABBN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. Indices posted strong gains yesterday, with the S&P 500 and Nasdaq gaining 51bps
and 102bps, respectively. Both indices are back above their short-term moving averages. Support is near their 21-DMA (6,418/21,367),
followed by their rising 50-DMA (6,333/20,995). The distribution day count currently stands at six and four, respectively, with one day set to expire on the S&P 500 today after the close.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the full report. Key points from it include:
- The Stoxx 600 remained in a Confirmed Uptrend last week. However, concerns are growing as distribution days increase and market breadth narrows. The T2121 indicator (12-week new high/new low ratio) indicates that the rally is fragile and breakouts have slowed. The primary risk is banks, which are under heavy selling pressure and have broken below their 21-DMA following a strong rally that has been further hampered by French political unpredictability.
- All sectors ended lower last week. Transportation (-3.7%), Financial (-3.4%), and Retail (-2.7%) declined the most, while Consumer Staple and Technology performed better with smaller declines. Capital Equipment continued to deteriorate, Financial stalled following recent strength, and Energy, Utility, and Transportation are beginning to lose momentum.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 rebounded from its intraday low but still ended 69bps down on lower
d/d volume, closing right at its 21-DMA. The Nasdaq declined 82bps on higher volume, registering a distribution day, and closed below its
21-DMA. Immediate support is at their rising 50-DMA (6,325/20,958). The distribution day count currently stands at six and four,
respectively, after the S&P 500 dropped a distribution day yesterday on account of aging.
Won Europe Today
Yesterday,
- European markets closed marginally higher, led by robust gains in defense stocks. A spike in long-dated Eurozone bond yields dampened gains as investors grew worried over the government debt levels globally. On the economic front, Eurozone’s manufacturing grew for the first time since 2022, indicating rising domestic demand. Investors are now focused on the U.S. jobs report, which may influence the Fed’s next policy move.
- Among key movers on the Stoxx 600, shares of Novo Nordisk (NON.DK; NOVOB:DC) rose 1.8% after the company said that its weight-loss medication Wegovy reduced the risk of heart attack, stroke, or death by more than half compared to Eli Lilly’s (LLY) rival treatments. Meanwhile, shares of Ørsted (DEN.DK; ORSTED:DC) rose 3.5%, following Equinor’s (EQNR.NO; EQNR:NO) commitment to take part in its multibillion-dollar rights issue to strengthen the company’s finances.
- The Stoxx 600 ended the session 0.2% higher and tested resistance at its 21-DMA. Next resistance is at its 10-DMA (+0.7%), followed by its August high (+1.7%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Banks (+85bps), Automobiles & Parts (+75bps), and Health Care (+48bps) were the top gainers, while Utility (-91bps), Retail (-13bps), and Travel & Leisure (-12bps) were the sole decliners.
- Among major indices, France’s CAC rose 0.1% and tested resistance at its 100-DMA. Next resistance is at its 50-DMA (+0.8%), followed by its 21-DMA (+1%). Germany’s DAX advanced 0.6% and tested resistance at its 50-DMA. Next resistance is at its 21-DMA (+0.5%). The U.K.’s FTSE rose 0.1% and tested resistance at its 10-DMA. Next resistance is at its all-time high (+1.3%).
- Thirteen of the 16 markets we track closed in the green. Eight markets are in a Confirmed Uptrend, four in an Uptrend Under Pressure, three in a Rally Attempt, and one in a Downtrend.
- All 29 European Focus List names are trading above their 200-DMA, while 23 names are trading above their 50-DMA.
- Actionable names in the Focus List include Argenx (ARGX.BE; ARGX:BB), UCB (UCB.BE; UCB:BB), and Abb (ABBN.CH; ABBN:SW).
