Day’s Summary
Thu Jul 20 saw stocks fall as investors sold off shares of Netflix and Tesla. The selling in those two stocks weighed heavily on the indexes, in particular the NASDAQ.
The SPX closed down 30 points to 4534. The NASDAQ fell 294 points to end the day at 14063 down 2%.
Let’s review the technical indicators from the close on Thursday to see if the rally will to rebound or continue selling on Friday.
Stock Market Outlook: SPX Closing Chart For Thu Jul 20 2023
The index closed below the Upper Bollinger Band and all moving averages which is still bullish.
The closing candlestick on Thursday is bearish and continues signaling stocks are overbought.
The 21, 50, 100 and 200 day moving averages are continuing to climb which is bullish.
The Lower Bollinger Band is falling further below the 50 day moving average while the Upper Bollinger Band is rising. Both signals are more bullish than bearish at present.
Stock Market Outlook review of Thu Jul 20 2023
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Thursday Jul 13. The up signal was weaker on Thursday.
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Ultimate Oscillator: The Ultimate Oscillator is falling.
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Slow Stochastic: The Slow Stochastic has a down signal in place. It is overbought.
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Relative Strength Index: The RSI signal is falling sharply and still overbought.
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Rate of Change: The rate of change signal is falling.
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Stock Market Outlook: Support and Resistance Levels |
| 4600 is resistance |
| 4575 is resistance |
| 4550 is resistance |
| 4525 is resistance |
| 4500 is resistance |
| 4485 is resistance |
| 4470 is resistance |
| 4450 is resistance |
| 4435 is resistance |
| 4420 is resistance |
| 4400 is strong resistance |
| 4390 is resistance |
| 4370 is resistance |
| 4350 is support |
| 4340 is support |
| 4325 is support |
| 4310 is support |
| 4300 is support |
| 4290 is support |
| 4275 is support |
| 4250 is support |
| 4240 is support |
| 4225 is support |
| 4210 is support |
| 4200 is good support |
Stock Market Outlook for Fri Jul 21 2023
For Friday the technical indicators are advising that the market remains overbought and susceptible to further weakness.
The selling on Thursday was dominated by Tesla and Netflix stocks but on Friday we could see a few more stocks move lower before the next bounce attempt.
With the morning on Friday expected to be weak, we still could see a weak bounce attempt in the morning. The close is expected to be lower but with a bounce attempt, even a small one likely, we could see citizens try to close the index higher.
Potential Economic and Political Market Moving Events
Friday:
No reports