American Stock Exchange

[Solid ECN]

Dow Jones - US stock market continues to rise​

Quotes of stock indicators took advantage of the slowdown in the bond market and continue to grow after the publication of positive corporate reports. According to financial company Refinitiv Lipper, the average value of shares of US funds increased by 8.7% in October, which served as a catalyst for the DJIA quotes to strengthen by 14.0% during the month.

Index quotes continue corrective dynamics, rising in the direction of the daily channel resistance line.

Support levels: 32000, 30650 | Resistance levels: 33300, 34300​

 

[Solid ECN]

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CAC 40 - French stock market continues to rise​

One of the leading indexes of the European economy CAC 40 continues its upward correction in the area of 6418, which was supported by yesterday's macroeconomic report: according to September data, French Exports rose to 52illion euros from 51.88 billion euros in August, while Imports rose to 69.5 billion euros from 67.1 billion euros.

On the daily chart of the asset, quotes continue to trade within the descending corridor, approaching the resistance line.

Support levels: 6330, 6030 | Resistance levels: 6550, 6830​

 

[Solid ECN]

S&P 500 - Local corrective trend continues​

The American market significantly slowed down the dynamics in anticipation of the results of the Midterm elections to the US Congress, as well as data on inflation. The S&P 500 is currently correcting, trading at 3759.

Based on the interim results of the voting, it is quite likely that different parties will control the Senate and the House of Representatives, which will create a so-called "political impasse". This may mean that the adoption of new legislative initiatives will be difficult, and, therefore, the likelihood of the final adoption of a bill to raise corporate taxes may be reduced, which is a positive signal for the stock market.

The index quotes continued the local corrective trend, more and more clearly forming the Flag pattern on the daily chart.

Support levels: 3700, 3570 | Resistance levels: 3830, 4000​

 

[Solid ECN]

DAX 40 - Low gas prices catalyze the growth of the German manufacturing sector

As of the end of yesterday's trading, 1.0 thousand cubic meters of "blue fuel" on the London Intercontinental Exchange (ICE) was traded at a price of 1.245 thousand dollars. The spot price for gas with a next day delivery is at around 0.716 thousand dollars per 1.0 thousand cubic meters, which cannot be compared with the spring peak prices of 3.8 thousand dollars. The main reasons for the decline in quotations are the high filling levels of European gas storage facilities, which are approaching 99%, as well as abnormally warm weather in the EU for the current time of the year.

On the daily chart of the asset, the price is trading above the resistance line of the descending channel, actively rising and reaching the highs of this spring.

Support levels: 13962, 13262 | Resistance levels: 14631, 15541​

 

[Solid ECN]

Dow Jones - Index headed for August highs

Quotes of US stock indicators slowed their growth against the background of ambiguous rhetoric of officials of regional Federal Reserve Banks (FRB) regarding further prospects for raising interest rates. Thus, the head of the St. Louis Fed, James Bullard, noted that the regulator needs to continue the "hawkish" course, since the current interest rate level does not limit economic activity sufficiently. In his opinion, the target level of the value may range from 5% to 7%, however, if inflation in the USA slows down in the coming months and quarters, the US Fed will not have to tighten monetary policy as sharply as expected at the moment.

On the daily chart, the index quotes continue their corrective dynamics and increase, reaching a local maximum in early August at around 34000.

Support levels: 33180, 31750 | Resistance levels: 34000, 35350​

 

[Solid ECN]

Nasdaq 100 - negative fundamental background hinders index growth

The focus of investors' attention continues to be companies associated with Elon Musk, and now the negative background has shifted from Twitter Inc. to Tesla Inc. Thus, the manufacturer of electric cars announced that it was recalling a batch of 321.0K popular Model 3 and Model Y automobiles in the USA due to a defect in the taillights. This year, a similar situation is repeated for the 19th time due to imperfections of structures. Among the positive news, it is worth noting the dynamics of the shares of The Walt Disney Co., which have moved to active growth against the background of news about the return to the company of Bob Iger, who left the post of executive director in 2020.

On the daily chart, the index quotes continue to attempt to exit the local side channel.

Support levels: 11320, 10660 | Resistance levels: 11870, 12780​

 

[Solid ECN]

S&P 500 - Prospects for a slowdown in the US Fed's “hawkish” rate support the stock market

The American stock market continues to recover its positions against the backdrop of positive signals from the US Federal Reserve, which were received from the minutes of the last meeting of the monetary policy department. According to the published document, the agency acknowledges the serious uncertainty in the economy associated with high interest rates and does not rule out the start of a slowdown in the pace of their adjustment to assess the effect on the economy from the steps already taken. Also, the previous level of stability of the value was revised upwards, and this gives the market a signal that the rate will change next year as well. Thus, analysts confirmed their confidence in the continued tightening of monetary stimulus by the US Federal Reserve, but at the December meeting, they expect an increase of 50,0 basis points, and not 75,0 basis points, as it was in November.

The index quotes continue the local corrective trend, and on the daily chart, they still form a Flag pattern, rising toward the resistance line, and technical indicators hold a buy signal.

Support levels: 3940, 3746 | Resistance levels: 4126, 4310​

 

[Solid ECN]

CAC 40 - French stock market continues to rise actively

French companies continue to demonstrate fairly strong financial results, despite another decline in business activity in the country: in November, the figure corrected from 103 points to 101 points against the forecast of 102.0 points. However, at the moment, the attention of investors is drawn to the statement of representatives of the automotive corporation Renault Group on the conclusion of cooperation with the energy companies Engie SA, Voltalia SA and Electricite de France SA for a 15-year supply of electricity from renewable sources, which can cover up to 50% of the needs of the automaker in the country. Recently, the issue of decarbonization of production in France has been quite acute, and reports of a deal may cause approval from the environmental community, allowing the issuer to attract additional investment.

On the daily chart, CAC 40 quotes continue to trade above the resistance line of the descending corridor, and the technical indicators strengthen the buy signal.

Support levels: 6610, 6340 | Resistance levels: 6800, 7160​

 

[Solid ECN]

ASX 200 - Australian stock market continues its uptrend

Thus, the largest Australian financial conglomerate Commonwealth Bank of Australia today will present financial results for the third quarter, from which analysts expect a significant increase in revenue in the area of 12.02 billion Australian dollars, and the diversified company Wesfarmers Ltd., according to preliminary estimates, will record revenue at the level of 6.97 billion Australian dollars, up from 7.05 billion Australian dollars a quarter earlier. Earnings per share are projected in the region of 1.0 dollar, in line with the previous quarter.

On the daily chart of the asset, the price is trading within the global side channel, having reached the resistance line the day before, and the technical indicators keep a stable buy signal.

Support levels: 7170, 7000 | Resistance levels: 7280, 7440​

 

[Solid ECN]

Nasdaq 100 - The US stock market is correcting down again

At the beginning of the week, the US market traded with low volatility, but the situation began to change after a number of officials from the regional Federal Reserve Banks (FRB) spoke about the current monetary policy. Thus, the Chair of the St. Louis Fed, James Bullard, noted that the US Federal Reserve needs to keep the interest rate above 5.0% throughout the next year, and possibly even several quarters of 2024, in order to have a significant impact on inflation. This opinion was shared by the Chair of the Fed of New York, John Williams, who noted that the regulator will continue the policy of aggressively increasing the indicator and will keep it at a high level throughout the next year.

On the daily chart, the index quotes continue to trade within the local rising channel, and the technical indicators are about to reverse and give a sell signal.

Support levels: 11330, 10665 | Resistance levels: 11900, 12553​

 

[Solid ECN]

DAX 40 - Correction in the bond market supports the index

After the release of extremely weak statistics on the labor market, corporate news receded into the background. The number of unemployed in Germany in November increased by 17.0 thousand after an increase of 9.0 thousand in the previous month, while analysts expected an increase of 13.0 thousand. In turn, the overall Unemployment Rate in the country corrected to 5.6% from 5.5% a month earlier. The constant increase in the number of unemployed citizens has been going on since May, which is an extremely negative signal for the country's economy.

On the daily chart of the asset, the price is trading well above the descending channel resistance line, reaching highs in the late spring of this year, and the technical indicators maintain a steady buy signal.

Support levels: 14260, 13430 | Resistance levels: 14830, 15540​

 

[Solid ECN]

Nasdaq 100 - correction before the meeting of the US Fed

US stock indicators are turning to the downside, and the trend of recent days signals a significant increase in market uncertainty. Next week, on December 14, the last meeting of the US Federal Reserve of the year will take place and, given the recent statements by officials of the regional Federal Reserve Banks (FRB), the regulator is going to slow down the pace of interest rate adjustment. However, the latest data on the labor market confirms the strengthening of the negative dynamics of indicators, and as the Unemployment Rate in the country rises, this may provoke the US financial authorities to continue their "hawkish" policy, which would be a serious blow to the stock market, which is already under pressure.

On the daily chart of the asset, the index quotes continue to trade above the local sideways channel, and the technical indicators maintain a steady buy signal.

Support levels: 11500, 10700 | Resistance levels: 12100, 12800​

 

[Solid ECN]

S&P 500 - Index strengthens ahead of Fed meeting

Last week, analysts at JPMorgan Chase & Co. predicted growth of quotations within 10.0% if inflation in the US is lower than the forecast, but the asset was able to strengthen only by 2.2%. However, consumer prices increased in November by 7.1%, lower than October's growth of 7.7%, virtually guaranteeing a softening of the “hawkish” rhetoric of the US Federal Reserve. The meeting will take place this evening, and analysts expect the regulator to raise interest rates by 50.0 basis points to 4.50%: this signals that the agency is interested in a sharp tightening of monetary policy, and companies that are highly dependent on the cost borrowing, learn that their debt load will not be sharply increased once again.

The trading instrument continues the local corrective trend and forms an ascending corridor on the daily chart, rising toward the resistance line, and the technical indicators keep a buy signal.

Resistance levels: 4090, 4310 | Support levels: 3990, 3830​

 

[Solid ECN]

DJIA - The US stock market reacted neutrally to the increase in interest rates

The Dow Jones is correcting in a local trend, trading at 34050. Volatility in the US stock market in the evening trading the day before reached the highest levels since the end of October, the reason for which was the last meeting of the US Federal Reserve this year.

Despite the fact that analysts assumed a rate hike of 50 basis points, investors still reacted quite actively to the factual confirmation of this from the regulator. In addition, the statement of the Chair of the Fed, Jerome Powell, that the rate of adjustment of the value is not so important, and the decision to raise or lower the value will be made each time separately, was received positively. Investors hope that now the debt burden on companies will no longer rise as sharply as it has been throughout the autumn.

On the daily chart, the index quotes continue corrective dynamics, reaching the resistance line of the global Expanding Formation pattern. Technical indicators hold a buy signal, which has begun to strengthen.

Support levels: 33500, 32500 | Resistance levels: 34440, 35370​

 

[Solid ECN]

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FTSE 100 - British stock market continues its downward correction​

At the moment, the situation in the economy comes to the fore, as well as the actions of the Bank of England, which yesterday once again raised the interest rate by 50 basis points, bringing it to 3.50%. Each increase in value entails an increase in the cost of loans, which most companies in the technology sector cannot do without. The decision of the regulator this time was not unanimous: 2 out of 9 members of the board were in favor of maintaining the indicator at the current level. If the number of opponents of the interest rate increase grows, the Bank of England may revise its monetary policy.

On the daily chart of the asset, the index quotes are completing corrective growth as part of the next wave of the Expanding Formation global pattern and are reversing downwards. Technical indicators remain in the state of purchase signal that is starting to weaken.

Support levels: 7400, 7270 | Resistance levels: 7500, 7630​

 

[Solid ECN]

S&P 500 - Bond growth puts pressure on stock indexes again

The American stock market today does not demonstrate single dynamics and is again subject to fluctuations due to the news of the corporate segment. Thus, it became known that the US Securities and Exchange Commission (SEC) has charged the industrial group Honeywell International Inc. with participating in corruption schemes in Brazil and Algeria, which may force investors to reconsider their attitude to a rather promising company demonstrating stable revenue growth throughout the year. Shares of the entertainment company The Walt Disney Co. once again reached the minimum of the year against the background of news that the box office of the new film "Avatar: The Way of Water" did not meet expectations, making much less than preliminary forecasts.

On the daily chart, the index quotes continued the local corrective trend, confidently consolidating below the support line of the ascending channel. Technical indicators have already reversed and issued a sell signal.

Support levels: 3780, 3640 | Resistance levels: 3890, 4050​

 

[Solid ECN]

NI 225 - the stock market reacted sharply to the regulator's decision​

Despite statements by officials of the Bank of Japan that the expansion of the range of government securities for purchase by the regulator is not a signal for future tightening of monetary policy, many experts do not trust this too much, since a change of the department's leadership is expected in April. So, one of the possible successors of Haruhiko Kuroda may be former Deputy Finance Minister Takatoshi Ito, who said that such actions look like a preparatory step for the future departure from the policy of negative rates, to which market participants immediately reacted, meanwhile the market closed with a serious drop in quotations. Japanese business exists largely due to the negative borrowing rate, and, with the change of the "pigeon" rate, most companies will have to significantly adjust their development strategy.

On the daily chart of the asset, the price remains within the global sideways corridor, heading towards the support line. Technical indicators have already reversed and issued a new sell signal.

Support levels: 26100, 25100 | Resistance levels: 26800, 27600​

 

[Solid ECN]

CAC 40 - Bond growth is the main factor in the correction of index quotes​

Thus, the popular 10-year notes are traded at a rate of 3.046%, which exceeds the October year's high of 2.998%, while the conservative 20-year notes are traded at 3.317% while yielding the peak value of 3.420%. The global 30-year bonds' yield is at 3.219% compared to 3.290% in October. Although the values have not yet reached highs, the situation in the global economy and the gradual approach of a recession will most likely support their positions further, provoking a decrease in investment demand for high-risk shares of companies.

In the meantime, the country's economy remains under pressure due to mass actions of civil servants demanding higher wages: despite an agreement between the authorities and the leadership of the French National Railway, 40% to 50% of high-speed trains were canceled on Christmas Day, and medical workers institutions intend to hold demonstrations until January 2, demanding a 50% increase in the cost of admission.

On the daily chart, CAC 40 quotes continue to trade within the global Expanding formation pattern and are currently developing a new wave of decline. Technical indicators have already reversed and issued a new sell signal.

Support levels: 6370, 6170 | Resistance levels: 6580, 6810​

 

[Solid ECN]

Nasdaq 100 - US stock market close to year lows​

Thus, the quotes of Netflix Inc., an American entertainment company, as well as a streaming service for films and series, are rising against the backdrop of a significant adjustment in forecasts from CFRA Research analysts, who increased the recommendation on the issuer's securities by two steps at once – from Sell to Buy. The target price for the company's shares was changed to 310.0 dollars from 225.0 dollars. An upward trend is also observed in the price of the pharmaceutical giant Pfizer Inc. after the first positive results of clinical trials of gene therapy for the treatment of hemophilia appeared.

On the daily chart, the index quotes continue to decline, approaching the year's lows around 10700. Technical indicators have already reversed and given a new sell signal.

Support levels: 10700, 10000 | Resistance levels: 11180, 11800​

 

[Solid ECN]

A Shift in the Dollar: Weak Data Sparks Talk of Rate Cuts

On Tuesday, the dollar index stabilized at around 103.1, marking its lowest point in three months. It's poised to close November with a near 3% decline, the most significant monthly fall in a year. This downturn follows weak economic indicators, fueling speculation that the Federal Reserve might halt interest rate hikes and possibly reduce rates next year.

Market predictions suggest a 25% likelihood of rate cuts by March 2024, increasing to 45% by May. Looking forward, investors are keenly awaiting the release of PCE prices, the Fed's preferred inflation measure, alongside personal income, spending data, and the ISM Manufacturing PMI for more clues. This week also features speeches from several Fed officials at different events. The dollar has weakened notably, especially against the yen and antipodean currencies.​