Major Stock Indices Analysis: A Peek into FTSE 100, S&P 500, and Russell 2000
By Julie Fernandez, Senior Financial Analyst at Triangle Profits
[Triangle Profits Financial Blog – Your Trusted Guide to the Market Pulse]
FTSE 100: Holding the Fort with Caution
The FTSE 100, UK’s leading index, has been battling to surpass last week’s high at 7,535. Hindered by the 55-day SMA at 7,505, it’s treading carefully in a market dampened by US futures and Asian stocks’ reaction to Nvidia’s earnings. However, it’s not all bleaks. The index remains resiliently above its recent low of 7,446, indicating an ongoing uptrend. The immediate focus is on overcoming the November peak at 7,535, eyeing a further rise to the 200-day SMA at 7,595. Support levels to watch include 7,466 and 7,430.
S&P 500: At a Crossroads
The S&P 500, a barometer of US market health, saw its advance stalling around 4,540, echoing the September peak. This slowdown follows the Federal Reserve’s minutes indicating no rate cuts by next May. A minor pullback might occur, potentially revisiting the mid-November high at 4,524. However, the potential for growth remains, as a climb above the recent high of 4,557 could aim for the 4,607 July peak.
Russell 2000: The Struggling Underdog
The Russell 2000, despite a modest 2% year-to-date gain, is grappling within a tight range below its 200-day SMA and last week’s high of 1,822 to 1,833. While the October-to-November uptrend is intact, immediate resistance at Monday’s 1,813 high and potential support at 1,757 (55-day SMA) are key areas to watch. A breakthrough above 1,833 could lead to the mid-September high at 1,874.
Recent Trends and What Lies Ahead
Russell 2000: A Critical Turnaround Needed
Last Friday, the Russell 2000 showed resilience, reversing Thursday’s losses. This index needs a significant push to reverse the spike high from Wednesday, which would also mean surpassing its 200-day MA. The weekly chart’s bearish stance underscores the importance of a strong performance to reverse the trend.
S&P 500 and Nasdaq: Signs of Recovery
Both the S&P 500 and Nasdaq are displaying healthier trends on their weekly charts. The S&P 500’s recovery from a ‘bear trap’ indicates an impending MACD trigger ‘buy,’ signalling a potential shift to positive technical. Similarly, the Nasdaq, having navigated its ‘bear trap,’ is ready for a MACD trigger ‘buy’ above the bullish zero line.
Timing Is Everything
With the trading week shortened, significant market movements are expected today and over the next couple of days. For the Russell 2000, it may take until year-end to fully recover, emphasizing the potential for unforeseen developments in this volatile period.
Final Thoughts
As we navigate the complexities of global financial markets, it’s crucial to stay informed and agile. The FTSE 100, S&P 500, and Russell 2000 each tell a unique story of resilience, caution, and potential. Keep an eye on these indices as they navigate through these uncertain times, offering insights into broader market dynamics.
Stay tuned to Triangle Profits for more updates and expert analysis on the pulse of the market.
[Julie Fernandez is a Senior Financial Analyst at Triangle Profits, with over a decade of experience in market analysis and financial consulting.]
