Stock Market Outlook for Fri Mar 22 2024 – Choppy – Dips Possible But Still Up

Prior Trading Day Summary:

On Thursday all 3 indexes closed at new all-time highs for a second straight day. Volumes remained decent but stocks are seeing some selling as investors are taking a few profits with the indexes at new highs.

The SPX rose 17 points to close at 5241. There were 441 new 52 week highs with many stocks making all-time new highs. There were just 17 new lows.

The NASDAQ rose 32 points to close at 16401. There were 365 new 52 week highs but 38% of all stocks were pulling back by the close.

Let’s review the close on Thu Mar 21 2024 to see what to expect for Fri Mar 22 2024.

Stock Market Outlook: SPX Closing Chart For Thu Mar 21 2024

The index closed above the Upper Bollinger Band and well above the 21 day moving average. This is bullish for the index.

The closing candlestick is strongly bullish for Friday but does indicate there is a strong possibility of a dip on Friday, probably early in the day.

The 21 day moving average is moving higher which is bullish. It is at 5130 on the SPX.

The 50 day moving average is rising and at 5000, which is bullish.

The 100 and 200 day moving averages are climbing which is bullish. The 200 day is at 4642 on the SPX which is bullish.

The Bollinger Bands are still in a Bollinger Bands Squeeze. The Lower Bollinger Band is above the 50 day moving average and rising which is bearish. The Upper Bollinger Band is turning higher which signals the SPX index is in an uptrend. This is bullish.

The S&P chart is bullish for Friday with a warning that a dip is likely and should be expected.

SPX Stock Market Outlook review of Thu Mar 21 2024 – Chart Courtesy Trading View

Stock Market Outlook: Technical Indicators Review

Stock Market Outlook for Fri Mar 22 2024 

For Friday the technical indicators are overwhelmingly bullish. We also received a new unconfirmed up signal from the MACD technical indicators.

Investors should be prepared for a possible dip or dips on Friday. Any such dips will be opportunities to setup more trades. The day will end slightly positive but a larger move higher is not anticipated.

Potential Economic and Political Market Moving Events

Wednesday and Thursday are the busiest days for economic reports that could change market direction.

Monday:

10:00 Home Builder confidence index came in as expected at 48 which is basically “steady” for housing.

Tuesday:

8:30 Housing starts are expected at 1.43 million

8:30 Building permits are estimated to be 1.49 million

Wednesday:

2:00 FOMC interest rate decision

2:30 Fed Chair Powell news conference

Thursday:

8:30 Weekly Initial Unemployment Insurance Claims was estimated at 213,000 but came in at 210,000

8:30 Philadelphia Fed manufacturing survey was estimated to fall to -5.0, down from 5.2. Instead it fell just -3.2.

9:45 S&P flash services PMI was estimated at 52.0 but came in at 51.7

9:45 S&P flash manufacturing PMI was estimated at 51.8 but came in at 52.5

10:00 Leading economic indicators were expected to rise to -0.1% up from -0.4% but rose to 0.1%

10:00 Existing home sales were expected to dip to 3.95 million from 4.0 million but instead  they rose to 4.38 million

Friday:

No events