The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 80–90bps on higher d/d volume, registering a
distribution day each. The first level of support is at their rising 10-DMA (6,173/20,208), followed by their 21-DMA (6,092/19,885). The
distribution day count increased to five and four, respectively.
Author: Deepashree MC
Won Europe Today
On Friday,
- European markets closed in negative territory, dragged down by weakness in banking and mining stocks. Investor sentiment remained cautious ahead of the end of the 90-day U.S. tariff pause, as major trade partners like the EU have yet to finalize trade agreements.
- The Stoxx 600 was down 0.5%. The index breached its 100-DMA but closed slightly above the moving average. It was testing support at its 50-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among significant movers on the Stoxx 600, shares of German defense equipment manufacturer Rheinmetall (RHMX.DE; RHM:GR) closed 3% higher after a raise in its price target.
- Among sectors, Health Care (+101bps) and Utility (+17bps) posted gains, while Mining (-145bps) and Retail (-144bps) lagged the most.
- Among major indices, France’s CAC 40 fell 0.75%, breaching its 50-DMA, and closed slightly above its 21-DMA. Support is at its 200-DMA. Germany’s DAX 30 closed 0.6% lower. The index tested support at its converging 21- and 50-DMA. The U.K.’s FTSE 100 ended flat, with immediate support at its 21-DMA.
- Denmark recorded Day 2 of its Rally Attempt.
- Thirteen of the 16 indices we track closed in the red. Four are in a Confirmed Uptrend, six in a Rally Attempt, and six in an Uptrend Under Pressure. The average distribution day count stands at 3.2.
- All the 23 European Focus List names are trading above their 200-DMA, while 11 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Alk-Abello B (ALK.DK; ALKB:DC), Safran (SGM.FR; SAF:FP), and Medicover B (MEDI.SE; MCOVB:SS).
Won Global View
The U.S. market remains in a Confirmed Uptrend. On Thursday, the S&P 500 and the Nasdaq gained 80–100bps on lower d/d volume.
The first level of support is at the rising 10-DMA (6,160/20,161), followed by the 21-DMA (6,078/19,832). The distribution day stands at
four and three, respectively.
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 stocks include Svenska Cellulosa Aktiebolaget (SW@G.SE; SCAB:SS), Persimmon (PSN.GB; PSN:LN), Moncler (MONC.IT; MONC:IM), and Just Group Plc (JUST.GB; JUST:LN).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq rose 48bps and 94bps, respectively, advancing toward highs.
Support is at the rising 10-DMA (6,134/20,064), followed by the 21-DMA (6,058/19,755). The distribution day count stands at four and
three, respectively
Won Europe Today
Yesterday,
- European markets ended higher, boosted by gains in renewable energy stocks, after the U.S. budget bill cleared a key vote. However, concerns around U.K. finances resurfaced as the British assets fell following the government’s retreat on welfare reforms. Investors also remained focused on potential U.S. trade deals ahead of the July 9 tariff deadline.
- The Stoxx 600 closed 0.2% higher, reversing its earlier losses. It has found support at its 100-DMA, with near-term resistance at its 50-DMA.We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among significant movers on the Stoxx 600, shares of Danish windmaker Vestas Wind Systems (VEW.DK; VWS:DC) rallied more than 10% on positive momentum among European renewable energy companies following the revised budget bill in the U.S.
- Among sectors, Mining (+332bps) and Automobiles (+166bps) led the gains, while Retail (-182bps) and Utility (-133bps) lagged the most.
- Among major indices, France’s CAC 40 reclaimed its 21- and 50-DMA after finding support at its 200-DMA and closed 1% higher. Next resistance is at its 100-DMA. Germany’s DAX 30 was up 0.6%, advancing from support at its 50-DMA, and closed above its 21-DMA. It was trading above all its key moving averages. The U.K.’s FTSE 100 closed 0.2% lower, with immediate support at its 10-DMA.
- Denmark recorded Day 2 of its Rally Attempt.
- All the 16 indices we track closed in the green, except the U.K. and Belgium. Four are in a Confirmed Uptrend, six in an Uptrend Under Pressure, five in a Rally Attempt, and one in a Downtrend. The average distribution day count stands at 3.7.
- All the 23 European Focus List names are trading above their 200-DMA, while 16 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Alk-Abello B (ALK.DK; ALKB:DC), Odfjell Drilling (ODDR.NO; ODL:NO), Safran (SGM.FR; SAF:FP), Medicover B (MEDI.SE; MCOVB:SS), and Bawag Group (BWGP.AT; BG:AV).
Won Europe Today
Yesterday,
- European markets closed lower as weakness in Industrials and Banks weighed on sentiment amid growing uncertainty around U.S. trade deals and tax policy ahead of the July tariff deadline. Meanwhile, Eurozone’s inflation inched up to 2% in June, aligning with the ECB’s target and slightly above 1.9% in May.
- The Stoxx 600 closed 0.2% lower, recording losses for a second consecutive session. The index breached support at its 50-DMA and is currently testing support at its 100-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among significant movers on the Stoxx 600, shares of Belgium-based metal recycling group Umicore (UMI.BE; UMI:BB) rose 12% after the company raised its full-year profit estimates.
- Among sectors, Food and Beverage (+138bps) and Health Care (+120bps) were the top gainers, while Banks (126bps) and Technology (-109bps) led the losses.
- Among major indices, France’s CAC 40 reversed early session losses after finding support at its 10-DMA. The index closed almost flat, slightly above its 200-DMA. Immediate resistance is at its 21-DMA. Germany’s DAX 30 extended its losses for a second straight session, closing 1% lower. The index breached its 21-DMA. Support is at its converging 10- and 50-DMA. The U.K.’s FTSE 100 closed 0.3% higher, slightly above its 10-DMA. Immediate resistance is at its 21-DMA.
- Eleven of the 16 indices we track closed in the red. Four are in a Confirmed Uptrend, five in a Rally Attempt, one in a Downtrend, and six in an Uptrend Under Pressure. The average distribution day count stands at 3.7.
- All the 23 European Focus List names are trading above their 200-DMA, while 15 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Alk-Abello B (ALK.DK; ALKB:DC), Odfjell Drilling (ODDR.NO; ODL:NO), Safran (SGM.FR; SAF:FP), Medicover B (MEDI.SE; MCOVB:SS), Sap (SAPX.DE; SAP:GR), and Bawag Group (BWGP.AT; BG:AV).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 declined 11bps on lower d/d volume, while the Nasdaq declined 82bps on
higher d/d volume, registering a distribution day. Indices have immediate support at their 10-DMA (6,113/19,991), followed by their 21-
DMA (6,041/19,691), 1% and 3% lower, respectively. The distribution day count is at four on the S&P 500 and three on the Nasdaq.
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 52bps and 47bps, respectively, extending their gains to
new highs. Support is at the rising 21-DMA (6,025/19,640), ~3-4% below. The distribution day count stands at four and two, respectively,
after one expired on the Nasdaq yesterday.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- Most European markets witnessed broader gains in the past week and reclaimed their near-term moving averages. The Stoxx 600 gained ~1.3% last week and is currently trading around its 50-DMA, slightly below the 21-DMA.
- On the sectoral front, Capital Equipment, Technology, and Consumer Cyclical were the strongest gainers. On the rotation graph, Utility and Capital Equipment showed positive short-term momentum, while momentum remained muted in Financial and Retail.
