On Thursday stocks staged a rally on the back of a weaker ISM number and more dovish Fed Beige Book.
By the close the S&P has risen 41 points to end the day at 4221.
The NASDAQ rose 165 points to end the day at 13100.
Friday we get the May non-farm payroll numbers. Often these numbers can be a market moving event.
Let’s review the SPX closing technical indicators on Thu Jun 1 2023 to see what to expect for stocks for Fri Jun 2 2023.
Stock Market Outlook Chart Comments At The Close on Thu Jun 1 2023
The index closed higher and left behind a bullish candlestick.
The SPX continues above the 21 day moving average and is back pressuring the Upper Bollinger Band. This is bullish.
The 100 day moving average moved above the Lower Bollinger Band on Thursday which is also bullish.
The 21, 50, 100 and 200 day moving averages are rising which is bullish.
The S&P chart is more bullish than bearish and is pointing to a higher day on Friday.
There are 7 up signal since January and no down signal in the chart.
Stock Market Outlook review of Thu Jun 1 2023
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is falling and positive.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Friday May 26. The up signal strengthened on Thursday. The MACD histogram is still positive.
- 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 positive.
- 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 an up signal in place.
- 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 and positive.
- 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:
4250 is resistance
4240 is resistance
4225 is resistance
4210 is resistance
4200 is resistance
4190 is resistance
4180 is resistance
4175 is resistance
4150 is resistance
4135 is resistance
4125 is support
4100 is support
4090 is support
4075 is support
4050 is support
4030 is light support
4025 is light support
4000 is support
Stock Market Outlook for Fri Jun 2 2023
For Friday the S&P technical indicators are pointing to a higher day even if the May non-farm payroll numbers disappoint.
Potential Economic and Political Market Moving Events
For today the May non-farm payroll numbers is the major event to watch.
Thursday:
8:30 May non-farm payroll report is expected to show 190,000 jobs and a 3.5% unemployment rate, up slightly from April’s 3.4%.