Market Direction Outlook For Dec 21 2012 – Fiscal Cliff After Hours

Perhaps today’s market direction comment is really more an after-hours comment since the market direction followed what was expected – weakness and then a move higher. But the market direction after hours turned down thanks to the continuing saga of the fiscal cliff.

There is not a lot of write about this evening as all the action may come tomorrow, but I can still review the market direction technical indicators to see what they were saying when the markets closed today.

Market Direction Technical Indicators Of Dec 20 2012

Market direction technical indicators continued to rise today so tomorrow could be an interesting day. At the time of my writing this outlook for Friday Dec 21, the futures are already down $201 on the Dow and $22 on the S&P. Nonetheless any positive news could turn that around so let’s take a look at the closing technical indicators.

For Momentum I am using the 10 period. Momentum is still positive and moving higher.

For MACD Histogram I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) is still positive and continues to climb.

The Ultimate Oscillator settings are Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months.

The Ultimate Oscillator is positive and pushing higher.

Rate Of Change is set for a 21 period. Rate Of Change is still positive and climbing higher.

For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic is overbought but still indicates that stocks will be higher.

For the Fast Stochastic I use the K period of 20 and D period of 5. These are not default settings but settings I set for the 1 to 3 month S&P 500 chart when it is set for daily. The Fast Stochastic is also extremely overbought but still is signaling that the S&P 500 will be higher.

Market Direction Dec 20 2012

Market Direction Outlook And Strategy

Not a lot to say this evening due to the fiscal cliff issue after hours. Tomorrow is options expiration for December and I have, or perhaps should say had, a lot of options that would expire. It should be interesting to see what happens Friday.

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