Previous Week’s Newsletter Performance

• SPX- $4,311 projected target met as the index touched a high of $4,322.62.

• FTSE 100- 7,644.50 projected target was met last Monday when the index touched a high of 7,654.84.

• AAPL- $184.80 projected target met as the index touched a high of $184.95 on last Monday’s session before selling off.

• TSLA- It touched a high of 252.42, as projected for the continuation of the uptrend in last week’s newsletter when the stock was trading at $213.97.

• BA- It reached the projected target of $220 in last Thursday’s trading session.

• META- As projected for a price correction towards the fib levels in the last mid-week newsletter, the stock touched a low of $258.88.

• TCOM- The stock rose by 4.51% on Friday as projected for a bull flag pattern breakout.

• DOCU- As projected, the price filled the gap and touched the projected target of $64 before selling off.

Major Highlights from the Global Markets 

Highlights of US Markets

• The major US benchmarks, including the S&P 500 and Nasdaq Composite, ended the week with gains of 0.39% and 0.14%, respectively. S&P 500 Index entered the bull market territory, up more than 20% off its mid-October lows. Dow Jones finished the week on a positive note, rising 0.34%, while Nasdaq 100 declined 0.13% for the week.

• Jobless claims reached 261,000, the highest level since October 2021.

• The economic optimism index, i.e., the gauge of Americans' outlook for the next six months, fell to its lowest level since last November.

• Institute for Supply Management's gauge of prices paid for services moderated to its lowest level since May 2020, while its gauge of overall activity in the services sector fell to 50.3, indicating virtually stalled growth as levels above 50 indicate expansion.

European Markets Highlights

• The STOXX Europe 600 Index closed lower, declining 0.51% for the week, while Germany’s DAX and France’s CAC 40 declined 0.63% and 0.79%, respectively, for the week.

• ECB officials signaled potential rate increases in June but less consensus on future hikes. ECB President Lagarde and Bundesbank chief Nagel maintained a hawkish stance, citing persistent price pressures.

• Eurozone consumer expectations for inflation in the year ahead decreased from 5.0% to 4.1% in April. The eurozone economy experienced a mild recession with a 0.1% contraction in Q1 2023 and Q4 2022. Eurozone retail sales remained flat, indicating weak consumption.

• Germany's industrial sector worsened, with unexpected declines in factory orders and modest growth in industrial output.

• UK house prices fell significantly in April, suggesting a potential slowdown in the housing market recovery. May housing market survey in the UK showed some improvements in measures like house prices, new inquiries, and sales agreements, though they remained in negative territory.

  Asian Markets Highlights

• Japanese equities saw gains, with the Nikkei 225 Index rising 2.25% and the TOPIX Index up 1.91% during the week.

• Chinese equities closed mixed, with the Shanghai Stock Exchange Composite Index gaining 0.04% and the CSI 300 declining 0.65% for the week. On the other hand, Hong Kong’s Hang Seng rose 2.32%.

• The yen remained weak against the U.S. dollar, benefiting exporters and attracting foreign investors.

• Uncertainty loomed ahead of the Bank of Japan's June meeting, with expectations for changes in monetary policy diminishing.

• China's May inflation data indicated rising deflation risks, while the Caixin survey showed solid growth in the services sector.

• China's exports declined by 7.5% in May, leading to expectations of further support measures from the People's Bank of China.

  Major News/ Catalyst Events that were Market Movers

  • Saudi Arabia announced a production cut of 1 million barrels per day in July, representing about 10% of the country's production capacity. OPEC members agreed to extend their existing production limits from the end of this year to the end of 2024.

  • Oil prices reacted to reports of U.S.-Iran talks on nuclear enrichment and oil exports but later stabilized.

  • Apple unveiled a virtual reality headset with a price of $3,500, initially causing a negative investor reaction.

  • General Motors joined with Ford to use Tesla’s electric vehicle charging networks. The Tesla stock reacted positively as investors considered it a big win for Tesla as it may force the U.S. govt. and other automakers to use Tesla’s vehicle charging technology.

  • The US Securities and Exchange Commission (SEC) has filed two lawsuits against major cryptocurrency exchanges, Binance and Coinbase, which could have significant implications for the future of cryptocurrency. The SEC has been actively asserting its jurisdiction over the crypto industry and has filed around 130 crypto-related lawsuits so far, leading to closures and settlements.

  Bond Market Changes

• Treasury yields saw a modest increase over the week. The market speculated on the impact of increased short-term bill issuance following the raising of the federal debt ceiling. New issuances and municipal bond sales by the FDIC saw adequate demand.

• The U.S. 10-Year Treasury yield closed higher at 3.743% for the week, while the U.S. 2-Year Treasury yield ended higher at 4.596%.

   

  Commodity Market Changes

• Gold closed higher for the week at $1,960.97 per ounce, and silver too closed higher at $24.286 per ounce.

• The Crude Oil WTI Futures - Jul 23 (CLN3) closed lower for the week at $70.35. Oil prices rose briefly after Saudi Arabia's production cut announcement but ended the week lower.

Technical Analysis of Major Indices