Indices Updates by Solid ECN

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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​

 

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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​

 

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DAX 40 - German stock market shows neutrality​

The German stock market slowed down amid a positive report from the GfK Group, according to which German Consumer Sentiment continues to improve: the forecast for January 2023 suggests an increase in the index to -37.8 points from -40.1 points. Thus, the indicator shows growth for the third month in a row, which can serve as a positive signal and is a direct consequence of the effectiveness of the measures taken by the German government to support households in the face of high energy prices.

On the daily chart of the asset, the price is trading well above the descending channel resistance line, continuing to reverse to the downside. Technical indicators have already reversed and issued a new sell signal.

Support levels: 13800, 13400 | Resistance levels: 14100, 14600​

 

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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​

 

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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​

 

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Dow Jones - Stock Index Remains Under Pressure​

Volatility in the national stock market began to return to its usual parameters. In many respects, this was facilitated by the recent publication of the minutes of the December meeting of the US Federal Reserve, the key point of which is the unanimous opinion of all department officials on preserving the "hawkish" rhetoric throughout 2023. Large corporations continue massive layoffs: thus, Amazon.com Inc. said it would lay off 18,000 workers this year, while pharmacy chain Walgreens Boots Alliance Inc. after the news about the decrease in the company's revenue in the first financial quarter of 2023 will reduce the staff by 1.5%.

On the daily chart, the trading instrument continues its corrective dynamics, trying to move away from the resistance line of the Expanding formation global pattern, and the technical indicators keep an unstable sell signal.

Resistance levels: 33500, 34600 | Support levels: 32550, 31300​

 

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DAX 40 - German Stock Market Corrects Upwards​

Quotes of the index were also supported by the report of the Eurostat, which reflected the slowdown in the dynamics of consumer prices in the eurozone to 9.2% from 10.1% a month earlier. Decreasing inflation at a faster pace could be a signal for the European Central Bank (ECB) to start easing monetary policy, which is of key importance for stock market companies. There is no talk of a complete rejection of the "hawkish" course yet; however, the slowdown in the rate of increase in the interest rate can serve as a driver for strengthening the positions of the DAX 40, which is already being facilitated by the dynamics in the domestic bond market: 10-year bonds lost 0.63%, trading with yield of 2.195%, and long-term 20-year ones lost 0.62%, trading at 2.228%.



On the daily chart, the price continues to trade in an uptrend, having overcome the local high of the previous year at around 14500.0 the day before.

Support levels: 14500, 13800 | Resistance levels: 14850, 15400​

 

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PayPal - A fall is possible.​

If the assumption is correct, the price of the asset will fall to the area of 50 – 20. In this scenario, critical stop loss level is 90.72.

 

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Shares of Pfizer, the largest US pharmaceutical company, are correcting at 47.

The daily chart shows that the price is declining, consolidating below the 50.0% Fibonacci interim retracement at 48.2.

On the four-hour chart, it can be seen that the downward movement may continue if the quotes manage to break the main support — the full correction level of 61.8% Fibonacci 46.60. The already passed intermediate correction level of 50.0% at 48.20 prevents the change of the trend, but so far, such a movement looks unlikely.

Technical indicators reinforce the sell signal.​

 

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Shares of Tesla are at 128.​

On the daily chart, the price is trying to consolidate within the corrective trend, trading within the corridor with dynamic boundaries of 139 – 126. On the four-hour chart, the upside potential is relatively small, despite holding above the 23.6% Fibonacci initial retracement at 125.

Soon, an attempt to break this level and reduce quotes may follow. Otherwise, a scenario with local growth and achieving the base correction level of 38.2% by Fibonacci around 139 is possible.​

 

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Soy Technical Analysis​

Bearish Scenario:
Soyabeans is trading in the upward channel, noting the AO indicator shows negative signals waiting to motivate the bears to confrim the break of the main bullish trend 1477.45 support (Fibo retracement 38.2) which extends to 1465.42 - 1456.05 (Fibo retracement 50).

Bullish Scenario:
We see a hammer candle in 12 hours chart which can indicate trend reversal. Breaching MA 50 would push the price to continue the bullish trend that its targets begin by testing 1511.8 - 1520.16.​

 

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Dow Jones - The US stock market is preparing to continue its growth​

Tesla Inc., an electric car maker, released financial results yesterday, with fourth-quarter revenue of 24.32 billion dollars, lower than forecast of 24.68 billion dollars, and with earnings per share of 1.19 dollars, higher than the previous quarter's figure of 1.05 dollars. In turn, technology giant IBM Corp. posted revenue of 16.70 billion dollars against a forecast of 16.13 billion dollars and earnings per share of 3.60 dollars, well above 1.81 dollars a quarter earlier.

Among the negative publications, one can single out yesterday's report of the manufacturer of aviation, space and military equipment, Boeing Co., whose quarterly revenue amounted to 19.98 billion dollars, an increase of 35.0% compared to the previous quarter. The company's recovery still failed to turn it into profit, with a loss per share of 1.75 dollars after -6.18 dollars per share in the previous quarter.

On the daily chart, the index quotes continue corrective dynamics, again trying to overcome the channel's resistance line at 34160, and the technical indicators are in a state of uncertainty.

Support levels: 33300, 32500 | Resistance levels: 34160, 35300​

 

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NI 225 - Japan's stock market is actively recovering​

The quotes of the NI 225 stock index are correcting around 27372.0 after statements by the head of the Bank of Japan Haruhiko Kuroda about the intention to continue the current ultra "dovish" monetary policy rate while maintaining the interest rate at a negative level. Several officials of the department also expressed the opinion that the easing of monetary incentives should be continued until the target inflation rate of 2.0% is reached. According to data published today, the consumer price index in Tokyo in January adjusted from 4.0% to 4.4%, which coincided with analysts' expectations, and the indicator excluding fresh food prices – from 4.0% to 4.3%, ahead of forecasts at 4.2%. At the same time, consumer inflation, excluding food and energy prices, slowed sharply from 2.7% to 1.7%, contrary to preliminary estimates of 2.8%. The growth of indicators in the metropolitan region usually acts as an indicator of the situation in the country as a whole, and most likely, the national index will also record negative dynamics, which, in turn, will confirm the increasing pressure on households.

On the daily chart, the price remains within the global sideways corridor, continuing to approach the resistance line, and the technical indicators hold the buy signal.

Support levels: 27000, 25700 | Resistance levels: 27550, 28400​

 

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Johnson & Johnson - Quarterly report recorded weak indicators​

An attempt to settle a dispute concerning more than 38.0K lawsuits on the use of low-quality talc in baby powder was unsuccessful again, causing a serious resonance in the media. The company planned to declare bankruptcy of its LTL Johnson & Johnson division, against which lawsuits were filed, but a panel of judges in Philadelphia sided with the plaintiffs and accused the holding of deliberately delaying the trial. Thus, Johnson & Johnson will again have to organize its defense in this case, and this time it probably will not be able to escape punishment.

The issuer's financial report disappointed investors, recording a drop in quarterly revenue to 23.7B dollars from 23.79B dollars, which is worse than the 23.9B dollars expected by analysts. Earnings per share beat forecasts, but were also below 2.55 dollars in the previous quarter, amounting to 2.35 dollars.

On the daily chart, the shares are correcting downwards, reaching the minimum of last autumn at 159.00.

Support levels: 159, 150 | Resistance levels: 166, 175​

 

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FTSE 100 - The stock market is waiting for the decision of the Bank of England on the interest rate​

The UK stock market is correcting against the backdrop of yesterday's data, which reflected a decrease in inflation in the eurozone in January by 0.4%, which provoked a slowdown in consumer prices in annual terms from 9.2% to 8.5%. In turn, the Core CPI in monthly terms amounted to -0.8%, and in annual terms remained at the level of 5.2%. The European Central Bank (ECB) and the Bank of England are meeting today and are projected to raise their interest rates from 2.00% to 2.50% and from 3.50% to 4.00% respectively, which is the main factor exerting current pressure on stock market quotes.

On the daily chart, the index quotes continue corrective growth, remaining in the middle of the rising channel, and the technical indicators are holding a buy signal in preparation for its strengthening.

Support levels: 7730, 7530 | Resistance levels: 7850, 8000​

 

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Nasdaq 100 - American stock market is preparing for a reversal​

One of the leading US indexes Nasdaq 100 shows corrective dynamics, being at around 12500.0, reversing downwards amid disappointing financial results of large companies. The situation cannot be changed even by the strengthening of the positions of the American currency, supported by data on an increase in the Nonfarm Payrolls by 517.0 thousand jobs with an expected growth of only 190.0 thousand.

The largest online retailer Amazon.com Inc. reported close-to-loss quarterly earnings per share of just 0.03 dollars, worse than the 0.17 dollars forecast. At the same time, the company increased its revenue from 127.1 billion dollars to 149.2 billion dollars. Technology giant Apple Inc. posted earnings per share of 1.88 dollars, lower than the expected 1.94 dollars, and revenue of 117.2 billion dollars versus a forecast of 121.88 billion dollars. In turn, Alphabet Inc. reported revenue of 76.05 billion dollars versus a forecast of 76.07 billion dollars and earnings per share of 1.05 dollars, down from the previous quarter's figure of 1.06 dollars.

On the daily chart, the index quotes are correcting as part of the global Expanding Formation pattern, approaching the resistance line. Technical indicators are holding a buy signal, which is about to start weakening.

Support levels: 12200, 11400 | Resistance levels: 12800, 13600​

 

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General Electric - Growth after the publication of the quarterly report​

According to the quarterly report, adjusted earnings per share increased by 51.0% compared to last year and amounted to 1.24 dollars. Revenue also significantly exceeded expectations and reached 21.79B dollars, adding 7.0% to last year's figure. Free cash flow also showed upward dynamics, increasing by 16.0% to 4.29B dollars. The company expects significant results from the aerospace division against the background of the restoration of air transportation due to the lifting of quarantine restrictions in the main directions. So, in General Electric Co. the revenue of the division is expected to grow by 19.0%, and the operating profit indicator may reach up to 5.5B dollars.

On the daily chart, the asset continues to correct in the local ascending channel, being near the resistance line.

Support levels: 79, 71.2 | Resistance levels: 84, 93​

 

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NI 225 - Trading within the Global Descending Corridor​

Japanese stock market quotes continue to move erratically against the backdrop of the closing period of corporate reporting, as well as recent macroeconomic statistics. On Tuesday, data on the state of the national economy were published, which reflected the growth of gross domestic product (GDP) by 0.2% in Q4 2022 after an increase of 0.2% in the previous quarter. Compared to last year, the indicator added 0.6% after 2.0% in the previous period.

On the daily chart, the price remains within the global descending corridor, reaching the resistance line and reversing downwards, and the technical indicators hold the buy signal, which begins to weaken.

Support levels: 27150, 25700 | Resistance levels: 27750, 28500​

 

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DAX 40 - the German stock market is preparing to continue its growth

The aircraft engine manufacturer MTU Aero Engines Holding published its financial results yesterday, reporting quarterly revenue growth to 1.51 billion euros from 1.35 billion euros in the previous period, while earnings per share increased from 2.14 euros to 2.23 euros. HR consulting company Randstad Holding NV released another positive report, reporting revenue of 7.01 billion euros, which beat analysts' forecast of 6.96 billion euros, and earnings per share of 1.93 euros, the highest in the company's history. Investors were disappointed only by the statistics of the brewing company Heineken NV, which recorded a drop in revenue from 7.79 billion euros to 7.42 billion euros.

On the daily chart, the price is trading in an uptrend, holding within the local ascending corridor with dynamic boundaries of 16300 – 15000, and the technical indicators maintain a steady buy signal.

Support levels: 15250, 14700 | Resistance levels: 15680, 16200​

 

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FTSE 100 - British stock market continues to rise​

The British stock market continues its upward movement supported by corporate reporting, as well as by a positive macroeconomic background. According to the UK Office for National Statistics (ONS), Retail Sales rose 0.5% in January after falling 1.2% a month earlier, while the annual rate slowed the decline from -6.1% to -5.1%. In turn, the Core Retail Sales Index on a monthly basis was 0.4% after -1.4% in December, while the annual rate was -5.3% after -6.5% a month earlier.

The day before, financial conglomerate Standard Chartered Plc. published its results: revenue was 3.47 billion pounds, after 4.32 billion pounds in the previous quarter, and earnings per share amounted to 0.039 pounds, significantly less than 0.33 pounds, recorded in the previous period. In turn, the consulting company Relx Plc. reported earnings of 4.58 billion pounds, beating analysts' estimates of 4.47 billion pounds, and earnings per share of 0.45 pounds, up from 0.39 pounds in the previous quarter.

On the daily chart, the index quotes continue their corrective growth, rising in the direction of the resistance line, and the technical indicators are holding a buy signal.

Support levels: 7925, 7714 | Resistance levels: 8055, 8250​