The market direction outlook for July 9 was for a move higher with some weakness during the morning. This is what we saw although the move higher was stronger than I had expected after the past couple of days. Before looking at the day’s market direction action, it is worth mentioning that the IMF is predicting world wide growth of around 3% which is a decrease from its earlier forecast of 3.8%. Revenue growth this quarter is what I will be watching.
Market Direction Action July 9 2013
The market direction action for July 9 was somewhat more encouraging. There was a gap up open but not overly enthusiastic and then a period of morning weakness. From there the market direction saw a grinding climb into the close. The grinding climb is far more indicative of a bull market than the past many trading days where the market direction opens with a gap up and then the rest of the day the market simply drifts sideways.
Market Direction Closing For July 9 2013
The S&P 500 closed at 1,652.32 up 11.86 and the Dow closed at 15,300.34 up 75.65. The NASDAQ closed at 3,504.26 up 19.43 .
Market Direction Technical Indicators At The Close of July 9 2013
Let’s review the market direction technical indicators at the close of July 9 2013 on the S&P 500 and view the market direction outlook for July 10 2013.
For Momentum I am using the 10 period. Momentum is climbing rapidly now and is beginning to show signs of being overbought.
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 buy signal on July 5. That buy signal remained active today pointing to higher gains in the days ahead and ended today’s trading with a higher reading again.
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 overbought.
Rate Of Change is set for a 21 period. The rate of change is mildly positive.
For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic is signaling that the market direction is up but it is extremely overbought.
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 indicating that the market direction is up. The Fast Stochastic is into extremely overbought territory.
Market Direction Outlook And Strategy for July 10 2013
The market direction action today was far better than yesterday. The number of stocks advancing was 72 percent with only 25% declining and up volume was 74%. The general consensus among investors seems to be that stocks are going to move higher.
The market has pushed higher for yet another day and is now in overbought territory. We could see some better opportunities tomorrow for Put Selling as often when the market direction move into overbought territory, stocks slide intraday as volatility often picks up. This may give some excellent Put Selling profit making opportunities. I will be watching tomorrow for additional opportunities to add to my profits.
The outlook for July 10 then is for more weakness to be seen but still the market should continue to close higher on Wednesday.
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