The outlook for Monday was for weakness for the markets and a negative close. All three indexes fell rather deeply in the early morning but by the close they were trying to move higher.
Much of the day investors sat on the sidelines while waiting for Apple earnings which are due on Tuesday after the close.
Tonight’s market direction outlook is shortened as I spent much of the time laying out trades for Tuesday.
S&P Index Close
The S&P closed at 2087.79.
Dow Jones Index Close
The Dow Jones closed back below 18000 at 17,977.24.
NASDAQ Index Close
The NASDAQ moved lower on Monday to close at 4895.79.
Stock Market Outlook – Advance Decline Numbers
Volume was lower on Monday by almost 500 million shares at 3.3 billion. Only 24% of all volume by the close was rising while 75% was falling. 65% of all stocks were moving lower. New highs were just 26 which is a huge drop. New lows were only 4 which is also a drop from Friday’s 9 new lows.
The NASDAQ traded 1.6 billion shares which is low. Only 31% of all volume was to the upside and 58% was to the downside. Advancing issues were 37% while declining issues made up 59%. New highs dipped slightly to 40 from Friday’s 45 and new lows were almost unchanged at 23.
These numbers continue to point to weakness but no major sell-off or strong pullback.
Stock Market Outlook for Tomorrow – Tuesday Apr 26 2016
The technical indicators were unchanged at the close on Monday with 3 that are negative for Tuesday and 3 that are positive. Many of the positive signals are trending sideways and not actually climbing. The closing candlestick is often bullish for the next day.
The outlook is mixed and sideways with a slight bias higher. The 50 day moving average is now above the 100 day which is a major buy signal and within days it could move above the 200 day moving average issuing another buy signal.
There will be weakness still for stocks as investors worry about the Fed and the chance of an interest rate hike which most analysts thought was “off the table” until the end of the year. Now the majority think the rate hike could come as early as June. Others think there will be a rate hike either April (this week) or May. This concern, plus Apple Stock earnings, are keeping investors on the sidelines but Tuesday looks like stocks may try to move up slightly ahead of Apple earnings.
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