The market direction outlook for Tuesday was for more sideways with a bias to the upside. The news out of Europe pushed the markets lower at the open. The rest of the day the market tried to recover. What is most interesting was the close today. Let’s take a look at the intraday market to see what happened today.
Market Direction S&P 500 Intraday For Nov 5 2013
The intraday one minute chart below shows the market direction plunge in the morning. Once again we saw an early morning low around 10:00 AM. From there the market climbed back to 1765 and into the close the trading became choppy. The S&P closed at 1762.97 or back to 1763. This places the S&P back in the consolidation stage with the market direction stuck sideways yet again.
Advance Declines For Nov 5 2013
Today decliners led advancers with 66% of stocks moving lower and 31% higher. New highs continued to drop off with just 143 new highs today but 89 new lows. Stocks are showing more signs of weakness again today with new highs falling and new lows rising.
Market Direction Closing For Nov 5 2013
The S&P 500 closed at 1,762.97 down 4.96. The Dow closed at 15,618.22 down 20.90. The NASDAQ closed at 3,939.86 up 3.27. The IWM ETF fells just 0.35% to 109.59
Market Direction Technical Indicators At The Close of Nov 5 2013
Let’s review the market direction technical indicators at the close of Nov 5 2013 on the S&P 500 and view the market direction outlook for Nov 6 2013.
For Momentum I am using the 10 period. Momentum is still positive and moved lower today.
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 Oct 14. MACD has been declining since October 22 and continued to decline today. With a reading of 0.82 it is on the verge of turning negative.
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 still positive.
Rate Of Change is set for a 21 period. The Rate Of Change is moving back higher.
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 although the reading is close to neutral. It is 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 signaling that the market direction is neutral and it is very bought again.
Market Direction Outlook And Strategy for Nov 6 2013
The market direction continues to push trying to break the 1762 to 1763 area decisively but has been unable to do so. While the technical indicators continue to remain for the most part positive, there are to many warning signs to think that the market direction could not shift to lower.
For Wednesday then I believe the market direction will stay sideways but the bias is now down.
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