The U.S. market remains in a Confirmed Uptrend. On Friday, the S&P 500 declined 64bps on higher volume, adding a distribution day
and closing just above support at the 10-DMA (6,451). The Nasdaq was down 115bps on lower d/d volume and closed below support at
the 10-DMA (21,487). The distribution day count remains slightly elevated at seven for the S&P 500 and three for the Nasdaq. Two will
expire on the S&P 500 this week
Author: Deepashree MC
Won Europe Today
On Friday,
- European markets fell to their lowest levels in more than two weeks, with the Stoxx 600 recording its first weekly loss in a month, as weakness in U.K. banks and political concerns in France dragged down investor sentiment. Recent economic data, including easing inflation in France, higher-than-expected August inflation in Germany, and rising unemployment, added to the caution. Investors now focus on Europe’s precarious outlook as they await the European Central Bank’s anticipated pause in September following consecutive rate cuts.
- The Stoxx 600 ended the session 0.6% lower after breaching its 21-DMA. Immediate support is at its 50-DMA (-0.4%), followed by its 100-DMA (-1.5%). 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 Ørsted (DEN.DK; ORSTED:DC) and Vestas WindSystems (VEW.DK; VWS:DC) declined more than 3% each, following the U.S. cancellation of $679M in funding for offshore wind projects. Meanwhile, shares of Remy Cointreau (RCO.FR; RCO:FP) fell 4.1%, despite the company raising its FY25/26 profit outlook.
- All sectors closed in the red, led by Technology (-185bps), Retail (-172bps), and Travel & Leisure (-113bps).
- Among major indices, France’s CAC declined 0.8% and broke below its 100- and 200-DMA. Next support is at its August low (-2%). Germany’s DAX closed 0.5% lower. Next support is at its 100-DMA (-1.6%). The U.K.’s FTSE fell 0.3% and tested support at its 21-DMA. Next support is at its 50-DMA (-1.7%).
- Fifteen of the 16 markets we track closed in the red. Eight markets are in a Confirmed Uptrend, four in an Uptrend Under Pressure, three in a Rally Attempt, and one in a Downtrend.
- France was downgraded to a Downtrend from an Uptrend Under Pressure after the index breached all its key moving averages.
- Portugal, Belgium, and Sweden recorded their fifth distribution day, while the U.K. and Austria recorded their fourth. Finland recorded its third distribution day, while Denmark and Spain logged in their second. The total average distribution day count stood at 3.36.
- All 29 European Focus List names are trading above their 200-DMA, while 21 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 is in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 32bps and 53bps, respectively, on lower d/d volume.
Immediate support is at their 10-DMA (6,449/21,494), with next support at their 21-DMA (6,411/21,353). The S&P 500 is making new
highs, while the Nasdaq is slightly off highs. The distribution day count remains elevated at six for the S&P 500 and three for the Nasdaq.
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 Brenntag (BNRX.DE; BNR:GR), Lifco B (LIFC.SE; LIFCOB:SS), and Castellum (CAST.SE; CAST:SS).
Won Europe Today
Yesterday,
- European markets ended mixed, staging a mild recovery from the prior session’s losses driven by political turmoil in France. Investors now look to Nvidia’s (NVDA) Q2 earnings for direction on the AI trade following August’s pullback in the technology sector rally.
- The Stoxx 600 closed 0.1% higher. It has near-term resistance at its 10-DMA. Support is at its 21-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 Swiss watchmaker Swatch Group (UHR.CH; UHR:SW) closed 6% higher after management said it could partly offset tariff impacts through price hikes.
- Among sectors, Technology (+80bps) and Health Care (+70bps) gained the most, while Banks (-123bps) and Travel and Leisure (-92bps) lagged the most.
- Among major indices, France’s CAC 40 closed 0.4% higher, with resistance at its 50-DMA. Next resistance is at its 21-DMA. Germany’s DAX 30 closed 0.4% lower, marking its third session of losses and breached its 21-DMA. It is finding support at its 50-DMA. The U.K.’s FTSE 100 declined for a second consecutive session, closing 0.1% lower. The index is testing support at its 10-DMA.
- Austria and Ireland were shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the indices breached the 21- and 50-DMA, respectively.
- Six of the 16 indices we track closed in the green. Nine are in a Confirmed Uptrend, three in a Rally Attempt, and four in an Uptrend Under Pressure. The average distribution day count stands at 2.33.
- All the 29 European Focus List names are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Argenx (ARGX.BE; ARGX:BB), NatWest (NWG.GB; NWG:LN), Abb (ABBN.CH; ABBN:SW), UCB (UCB.BE; UCB:BB), Camurus (CAMX.SE; CAMX:SS), and Talanx (TLXX.DE; TLX:GR).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 24bps and 21bps, respectively, on lower d/d volume.
Immediate support is at the 10-DMA (6,438/21,447), followed by the 21-DMA (6,402/21,318). The S&P 500 is at a new high, while the
Nasdaq is 1% off highs. Both indices have been consolidating in a sideways range for the last three weeks. The distribution day count
remains elevated at six for the S&P 500 and three for the Nasdaq.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European markets had a strong rally in the last week with many indices being upgraded to a Confirmed Uptrend. The Stoxx 600 was near itse was downgraded all-time high and was trading above all its key support levels.
- All sectors closed in positive territory. Transportation and Capital Equipment were the outperformers gaining 23% during the week.
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq advanced 41bps and 44bps, respectively, on higher d/d volume.
Both indices rebounded off their 10-DMA (6,428/21,416), with next support at the 21-DMA (6,394/21,290). They are 1% off highs and have
been consolidating in a sideways range for the last three weeks. The distribution day count remains elevated at six for the S&P 500 and
three for the Nasdaq.
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back 43bps and 22bps, respectively,
on lower d/d volume and escaped distribution. Indices have support at their 10-DMA (6,419/21,387) and 21-DMA
(6,387/21,265) and continue to chop around in a sideways range. The distribution day count stands at six and three,
respectively.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
Yesterday,
- European markets closed lower as investors booked profits after last week’s rally driven by optimism over U.S. monetary policy easing. Focus now shifts to Eurozone inflation data due later this week.
- The Stoxx 600 closed 0.4% lower, marking its weakest day in three weeks. The index was trading 1% off its all-time high. Immediate support is 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 Dutch alcoholic beverage maker JDE Peet’s (JDPS.NL; JDEP:NA) closed more than 17% higher after Keurig Dr Pepper (KDP) agreed to buy the company. Meanwhile, shares of Puma (PUMX.DE; PUM:GR) surged 16% on news that a major shareholder is considering selling a 29% stake.
- Most sectors ended in negative territory. Utility (-130bps) and Chemicals (-116bps) declined the most, while Energy (+13bps) was the sole gainer.
- Among major indices, France’s CAC 40 declined 1.6% on high volume and breached support at its 10-DMA. Next support is at its 21-DMA, followed by its 50-DMA. Germany’s DAX 30 closed 0.4% lower and ended marginally below its 10-DMA. Immediate support is at its 21-DMA. The U.K. market was closed on account of a bank holiday.
- France recorded its first distribution day.
- Fourteen of the 16 indices we track closed in the red. Twelve are in a Confirmed Uptrend, three in a Rally Attempt, and one in an Uptrend Under Pressure. The average distribution day count stands at two.
- All the 29 European Focus List names are trading above their 200-DMA, while 24 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Abb (ABBN.CH; ABBN:SW), UCB (UCB.BE; UCB:BB), Camurus (CAMX.SE; CAMX:SS), Talanx (TLXX.DE; TLX:GR), and Bawag (BWGP.AT; BG:AV).
