Indices

Tesla’s record revenues and overall strong financial results helped Wall Street yesterday, but SPX500 is cautious today as markets brace for the PCE Inflation update

International stocks are performing better than their US counterparts. This outperformance has been since Q4 last year. In this article, we use GER30 as a proxy for international equities and refer to the US30, the best performing US large-cap index.

The US index is cautious after its two-day rally, as markets expect earnings from tech giant Microsoft and EV king Tesla

A feeling of positivity regarding stocks is present. Here, we consider risk sentiments in Europe. We use FXCM GER30 as a proxy

The NAS100 daily candlesticks are trading in their bullish channel between the upper blue and red bands. Yesterday’s candle has a lower shadow, connoting buying off the lows.

The tech-heavy index consolidates last week’s rally, as investors await a series of speeches by Fed officials ahead of the communication blackout and the latest earnings by streaming giant Netflix

The VIX measures expected stock market volatility based on S&P 500 options and is often considered the market’s fear index. As it reaches extremes, contrarian signals may be triggered.

The RS has moved from the weak channel (between the lower blue and red bands) into the neutral region between the blue bands (blue arrow). The RSI is on the cusp of turning bullish, I.e. moving above 50 (red arrow).

The UK100 continues to trade in its daily chart’s bullish area between the upper blue and red bands. The hourly chart on the right also shows bullish developments. Its trend-following EMAs have crossed bullishly, as has its momentum based stochastic indicator (black ellipses). If the stochastic makes its way to the 80+ region (blue arrow), and holds, an underlying positive momentum will be present. This will be price supportive.

Following yesterday's CPI print, showing the slowest inflation in over a year, we consider the US 10-Yr real rate (top chart). December into January, price action resembles a flag (green parallel lines). This is a continuation pattern. The measured move suggests that real rates have a bias to decline.

The UK100 monthly chart is trading in its bullish channel between its upper blue and red bands. The index is near 7,779, close to its all-time high (ATH) of 7,903.40 (green horizontal line).