A look at the markets: Rude awakening, which levels to monitor?

How will the major indices close the week?

Investing.com

Central bank rate hikes and corporate earnings downgrades indicate a weakness in the global economy. After the Fed’s announcement, volatility has come into play again bringing confusion, will 0.75% be enough to “crush” inflation and give the stock market some respite?

The American Bank certainly wants the destruction of demand and the end of high inflation, after the breakings of the 50 and 200 day moving averages and the lows of September, only one more downward leg towards the lows of June is expected (as anticipated in the analysis of 9 September).

S&P 500

This week we are seeing a drop of more than 3% which has led the price to break the 3900, going above the 3800 dollars approaching the July lows, at 3715.
dollars (as assumed in the case of hikes in the September 16 analysis).

S & P500

Buying volumes are decreasing, MACD (currency momentum) continues to fluctuate at the same negative levels as in April and is in convergence with the RSI which describes the current situation “correctly”, entering the overbought zone (level 25). In addition, the VIX (CBOE Volatility Index), which has remained “steadily” between 23 and 26 points in the last month, a level at which stocks tend to be “volatile”, returned to around 28 points this week.

Some of the shares, from the current week, with a large change in price:
– FedEx Corporation (NYSE 🙂 -24%
– Generac Holdlings Inc (NYSE 🙂 -17.5%
– General Mills Inc (NYSE 🙂 + 7.9%
– Lennar Corporation (NYSE 🙂 + 5.8%

The continues to trade below the 50 and 200 moving averages, keeping alive the threat of a retest of the June lows. In the coming days it will be important to monitor the situation, after the rejection of the $ 3,900 the price is at a fundamental level, the lows of July, for the “confirmation” of further declines given the convergence between the indicators used. It is good to monitor any downward movements, in the 3715 dollars area, which could push the price towards 3800 and then close to the June low, at 3674 dollars.

But beware, with the overbought RSI, in case of low volatility and if it uses $ 3800 as support, the price could retest $ 3850 – $ 3870.

Important Levels to Monitor:
– 3850 (resistance)
– 3666 (support)



This week we are seeing a negative close of over 3.5%, returning below $ 11,800. First he returned to visit the 12 150 and then broke the support of the 12 thousand reaching the area of ​​11500 dollars, an important support in July (as assumed in the event of a rise in the analysis of 16 September).

NASDAQ

Buying volumes are decreasing, MACD (currency momentum) continues to be at negative levels and is in convergence with the RSI which “correctly” describes the strong decline of these days by falling back towards the oversold position (value 34). In addition, the (CBOE NASDAQ 100 Volatility) which in the last month has returned “constantly” above 29 points, thus increasing persistent volatility, this week is navigating on “stress” levels in the 33 points area.

Some of the shares, from the current week, with a large change in price:
– Airbnb Inc (NASDAQ 🙂 -17%
– Match Group (NASDAQ 🙂 -16%
– PepsiCo Inc (NASDAQ 🙂 + 1.6%
– Dollar Tree Inc (NASDAQ:) + 1%

The is also below its 50 and 200-day moving averages, again questioning the June lows. Next week it will be important to monitor the situation, for a confirmation of the negative “status” after the breaking of the psychological level at 12,000 dollars, given the convergence between the indicators used that are pushing the index towards 11,000 dollars. In the event that this happens the first support level we could find it at 11,500 – 11,300 dollars.

But it is good to see the movements because in the event of low volatility and if it uses 11,500 thousand as a support, it could retest 11,700 – 11,800 dollars.

Important Levels to Monitor:
– 1800 (resistance)
– 11314 (support)

STOXX600

This week we are witnessing a close close to -2% which has led the price to break the previous lows, the 407 euros. This has brought the value closer
of the index first to € 411 and then fell back to the June low of € 399 (as assumed in the event of increases in the analysis of September 16).

STOXX600

Buying volumes are decreasing, MACD (evaluates momentum) is at negative levels confirming the still bearish trend, in convergence with the RSI which after touching the neutral level (level 50) in the last week has fallen back towards the overbought (value 33), describing “correctly” the stress of the current week. In addition, the (STOXX 50 Volatility), which remained above the 26-point threshold in the last month, is fluctuating above 28 (stress) this week.

Some of the shares, from the current week, with a large change in price:
– Gn Store Nord (CSE 🙂 -22.9%
– Kojamo (HE 🙂 -20.5%
– Fortum Oyj (HE 🙂 + 39.7%
– Securitas B (ST 🙂 + 17%

It will be important to view the situation in the coming days, the price after the break of the September lows seems to be directed towards those of December 2020, at 386 – 380 euros. At that point it will be essential to first monitor the support at 395 euros, the lows of January 2021, because beyond the fall it would be much deeper.

In the event of low volatility and the overbought level, if it uses the 399 euros as support, the price could touch up the 407 – 415 euros.

Important Levels to Monitor:
– 415 (resistance)
– 399 (support)



This week we are witnessing a negative performance of -2.5% which brought the price below 22,000 euros, first retesting the resistance at 22350 (bearish trend line – red line) and subsequently breaking again the 50 period average and the psychological level of 21833 EUR.

FTSEMIB

Buying volumes are increasing, MACD (currency momentum) has returned to slightly positive levels confirming the moment of stress and volatility of these days, in convergence with the RSI which, after being close to oversold, in the first few days of the month, it transitions in a neutral-bullish position (value 44), slightly down compared to last week, describing “correctly” the attractive strength of the psychological support mentioned above.

Some of the shares, from the current week, with a large change in price:
– Inwit (BIT 🙂 -8%
– DiaSorin SpA (BIT 🙂 -8%
– Leonardo SpA (BIT 🙂 + 5%
– Bper Banca SpA (BIT 🙂 (BIT 🙂 + 3.4%

It will be important to monitor the price, to confirm the bearish trend, given the convergence of the indicators used. After touching the trend line (red line) several times and breaking the 50-period average, the price is projected towards € 21,200 which would represent -25% from the January 2022 high.

In case of low volatility, the overbought level and in case he uses 21600 euros, which correspond to an important support, the price could retest the 21833 euros.

Important Levels to Monitor:
– 21833 (resistance)
– 21400 (support)

This week we are seeing the worst performance among the major indices, with a negative close of more than 4% which projected the price above the March 2022 lows, at 18147 HKD and confirming our bearish view with the completion of the double top formed in the previous months.

HANGSENG

Buying volumes are increasing and sales are decreasing, MACD (evaluates momentum) remains at negative levels in convergence with the RSI which describes the bearish moment “correctly”, reaching the oversold level again (level 30). This has been happening since July 2022, when the price recorded multiple lows and leaving just as many gaps behind.

Some of the shares, from the current week, with a large change in price:
– Country Garden Holdings Company Ltd (HK 🙂 -15.6%
– Sunny Optical Technology Group Co Ltd (HK 🙂 -14.4%
– Chow Tai Fook Jewelery Group Ltd (HK 🙂 + 9.2%
– Sands China Ltd (HK 🙂 + 6%

Also in this case it will be important to monitor the situation, given the convergence between the indicators used which confirmed an inversion of the downward trend but possible short-term rises. Furthermore, the break of the minimum of March 2022, at 18235 HKD, confirms the difficult moment of the index that has completed the double maximum (which we talked about in recent weeks) in the 18147 HKD area with a -19% from the maximum of June 2022. Projecting negatively towards the lows of 2011, at 17200.

In the case of high buying volumes, the overbought level and the support of the 18k hold could return to visit the 18435 area, recovering the gap left behind, and the resistance at 18685 HKD.

Important Levels to Monitor:
– 18565 (resistance)
– 18000 (support)

For you, what will be the trend of the major indices in the coming weeks? share your (constructive) vision in the comments!

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“This article has been written for informational purposes only; it does not constitute solicitation, offer, advice, advice or recommendation to invest as such, it does not want to incentivize the purchase of assets in any way. Remember that any type of asset is valued from several points of view and is highly risky and therefore, every investment decision and the related risk remain with the investor “.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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