Day’s Summary
Thursday’s bounce was a bit overdue but it does not change the current period of weakness.
By the close of the day the S&P rose 16 points to 4381. Trading volume though was quite bearish with 70% of all volume being traded lower and that is setting up Friday for more weakness.
The NASDAQ rose 128 points to end the day at 13,630. Trading volume was still bearish on the NASDAQ but not as poor as we saw on New York. 50% of all volume was to the downside.
Volumes and the percentages of stocks falling on Thursday shows that Thursday was just a bounce.
Let’s review the SPX closing technical indicators from Thu Jun 22 2023 to see what to expect for Fri Jun 23 2023.
Stock Market Outlook: SPX Closing Chart For Thu Jun 22 2023
The index closed below the Upper Bollinger Band which is now bearish.
The closing candlestick is bearish for Friday and indicates that Thursday was simply a bounce.
The 21, 50 an 100 day moving averages are continuing to climb which is bullish, but the 200 day is slipping lower while the the Lower Bollinger Band is rising. This is bearish.
The S&P chart is reasonably bullish but there are signs of weakness in the chart.
Stock Market Outlook review of Thu Jun 22 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 Friday May 26. The up signal lost more strength on Thursday. The MACD histogram is almost negative.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive.
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Slow Stochastic: The Slow Stochastic has a down signal in place. It is leaving overbought signals.
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Relative Strength Index: The RSI signal is rising and positive.
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Rate of Change: The rate of change signal is rising and positive.
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Stock Market Outlook: Support and Resistance Levels |
| 4450 is resistance |
| 4435 is resistance |
| 4420 is resistance |
| 4400 is strong resistance |
| 4390 is resistance |
| 4370 is resistance |
| 4350 is resistance |
| 4340 is resistance |
| 4325 is resistance |
| 4310 is resistance |
| 4300 is resistance |
| 4290 is resistance |
| 4275 is support |
| 4250 is support |
| 4240 is support |
| 4225 is support |
| 4210 is support |
| 4200 is good support |
| 4190 is support |
| 4180 is support |
Stock Market Outlook for Fri Jun 23 2023
For Friday the technical indicators turned back to the upside but overall the up signals were small and poor. Again this points to Thursday as just being a bounce. Friday will see the index move lower and end the day lower.
The Weekly Initial Unemployment Insurance Claims released on Thursday came in at 264,000, higher than the expected 256,000. Existing home sales came in at 4.3 million, higher than the 4.25 million expected.
The signals are advising that Friday will end lower as selling and weakness will continue Friday.
Potential Economic and Political Market Moving Events
Friday:
8:30 S&P flash services PMI
8:30 S&P flash manufacturing PMI