On Thursday stocks faced selling pressure following Wednesday’s big jump higher. With stocks back near their all-time highs, profits were being taken after yesterday’s run-up.
But despite dipping twice during the day all three indexes found buyers who kept the markets from falling and eventually pushed stocks back up to near their entry levels. The NASDAQ actually closed higher by a very slim amount but during the day the index came within a fraction of breaking the all-time high.
Let’s look at the closings on Thursday and then take a technical overview.
S&P Index Close
The S&P index ended the day down 3.88 points to close at 2,381.38
Dow Jones Index Close
The Dow Jones ended down 15.55 points to close at 20,934.55.
NASDAQ Index Close
The NASDAQ closed up 0.71 points to end the day at 5,900.76.
Stock Market Outlook
Chart Comments At The Close:
On Thursday Mar 16 2017 the S&P traded higher rising to near the Upper Bollinger Band. The day’s action left behind a bearish candlestick for Friday.
During the day the S&P index traded above the 21 day moving average for the first time in 5 days.
The Lower Bollinger Band is continuing to climb and may reach the 21 day moving average which would be bearish. The Bollinger Bands Squeeze is still underway.
However all the major moving averages are all still climbing which is bullish.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is slightly negative but trying to climb.
MACD Histogram: 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) issued a sell signal Mar 7 2017. At the close of trading today the sell signal remains steady but not gaining strength.
Ultimate Oscillator: 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 now positive and sideways.
Slow Stochastic: For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic tries to predict the market direction further out than just one day. The Slow Stochastic has an up signal in place.
Rate of Change: Rate Of Change is set for a 21 period. This indicator looks back 21 days and compares price action from the past to the present. The rate of change signal is positive but continuing to move lower which indicates a strong possibility of lower prices lie ahead.
Relative Strength Index: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It often is the first indicator to show an overbought or oversold signal. The RSI signal is still moving lower.
Fast Stochastic: For the Fast Stochastic I use the K period of 20 and D period of 5. These are not default settings, but settings I use for the 1 to 3 month S&P 500 chart when I have it set for daily views. The Fast Stochastic has an up signal in place.
Support Levels To Be Aware Of:
A bounce is possible off 2355 which is the 21 day moving average should the market fall that low.
The market has light support at the 2300 and the 2250 level. There is also light support at 2195 but better support is at 2180 and then 2150.
Stock Market Outlook for Tomorrow – Friday Mar 17 2017
The technical indicators are better than they have been earlier in the week. There are still plenty of warning signals but there are also some positive views from investors.
Friday should see less profit-taking although the morning could be negative.
I am anticipating the market will be positive by the lunch hour and move higher into the close.
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