The bounce on Thursday was better than Wednesday’s bounce. It was not as strong which means it was not “overdone”. A lot of investors stayed away and that left the day choppy. The choppiness created more strength than we saw on Wednesday. The afternoon saw a few attempts to move lower including a dip in the last 15 minutes but overall it was a stronger day.
The S&P rose 64 points to close at 4577. The NASDAQ rose 127 points to close at 15281.
Both days still gave all the appearance of just being a bounce but the close on Thursday pointed to the possibility the sell-off is over, at least for now. We will know more on Friday.
Let’s review the technical indicators from Thursday to see what to expect for Friday.
Stock Market Outlook Chart Comments At The Close on Thu Dec 2 2021
The candlestick on Thursday is neutral but could be signaling a move back higher. It will depend on whether Friday closes higher on another bullish candlestick. This is called bullish engulfing. Friday will be important for the market direction outlook.
The 21 day moving average is continuing to fall but the SPX closed back above the 50 day moving average and the Lower Bollinger Band which is bullish.
The other remaining moving averages, namely the 50, 100 and 200 day are still climbing. This is bullish.
The Bollinger Bands are widening as the Bollinger Bands Squeeze is ending. At present this is bearish.
Stock Market Outlook review of Thu Dec 2 2021
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is rising, negative and at oversold readings.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Wed Nov 17 2021 . On Thursday the down signal was still very strong.
- Settings: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9.
Ultimate Oscillator: The Ultimate Oscillator is rising and oversold.
- Settings: 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.
Slow Stochastic: The Slow Stochastic has a down signal for Friday and is oversold.
Settings: 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.
Relative Strength Index: The RSI signal is rising away from being oversold.
- Settings: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It is often the first indicator to show an overbought or oversold signal.
Rate of Change: The rate of change signal is rising.
- Settings: 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. With the Rate Of Change, prices are rising when signals are positive. Conversely, prices are falling when signals are negative. As an advance rises the Rate Of Change signal should also rise higher, otherwise the rally is suspect. A decline should see the Rate Of Change fall into negative signals. The more negative the signals the stronger the decline.
Support and Resistance Levels To Be Aware Of:
4700 is resistance
4655 is resistance
4600 is good support
4550 is light support
4525 is light support
4500 is support
4490 is support
4475 is support
4450 is support
4400 is support
4370 is light support
4350 is light support
4300 is light support
Stock Market Outlook for Tomorrow – Fri Dec 3 2021
On Friday the November jobs report will be an important catalyst, at least in the morning, but the technical indicators are also advising that no matter what happens with the jobs numbers, the market will be trying to move higher.
If the numbers are overly strong we could see some selling as investors worry about how quickly the Fed will taper or raise rates. At the same time, a miss on the numbers may see strength as many investors may hope a miss gives the Fed a chance to pause and take a “wait-and-see” approach. That approach would mean a slow down from the hawkish comments the Fed chair made earlier this week.
For Friday then, watch for stocks to swing after the unemployment numbers but overall the indicators are pointing to a strong possibility of a higher close to end the week.
Stock Market Outlook Archives
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Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
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Stock Market Outlook For Thu Apr 30 2026 – Dips Likely Possible Lower Close
Morning Investing Strategy Notes for Wed Apr 29 2026
Stock Market Outlook For Wed Apr 29 2026 – Choppy But Higher Ahead Of More Earnings
Morning Investing Strategy Notes for Tue Apr 28 2026
