On Thursday comments from President Trump on the potential unveiling of a “phenomenal” tax reduction plan within the next few weeks, sent all 3 stock indexes to new all-time highs.
S&P Index Close
The S&P index ended the day up 13.20 points to 2307.87
Dow Jones Index Close
The Dow Jones endedup 118.06 points to 20,172.40
NASDAQ Index Close
The NASDAQ closed up 32.73 points at 5715.18
Stock Market Outlook
Stock Market Outlook review of Thursday Feb 9 2017
Chart Comments At The Close:
On Thursday the S&P closed at the Upper Bollinger Band. The closing candlestick was positive for Friday. While the possible Bollinger Bands Squeeze is still noticeable there are signs it may never happen. The Lower Bollinger Band has fallen back below the 50 day moving average which is a bullish sign.
All the major moving averages are climbing higher.
The 2300 level was broken through on Thursday.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive and moving higher.
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 Jan 30 2017. On Thursday Feb 9 it issued an unconfirmed buy signal at the close.
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 positive and rising into overbought readings.
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 and is overbought.
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 and starting to rise.
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. It is rising and overbought.
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 and is overbought.
Support Levels To Be Aware Of:
The market has built light support at the 2250 level. There is light support at 2195 but better support is at 2180 and then 2150.
Stock Market Outlook for Tomorrow – Friday Feb 10 2017
The technical outlook has changed by the close on Thursday and all indicators are positive and pointing higher.
There are also many signs the S&P is overbought but that could assist stocks at this point, in moving still higher a often investors are drawn into rising markets to not “miss out” on market gains.
The market was strong on Thursday on good volume. The overbought signals could mean we get some selling Friday morning for a short while, but then the S&P will move higher.
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