Prior Trading Day Summary
On Thursday stocks made another new intraday high as the SPX reached 7385 before moving lower into the close. The index ended the day at 7337.
The index closed down 28 points to 7337 on 6.4 billion shares traded. By the close 61% of all stocks on the index were falling.
The NASDAQ also made a new high on Thursday, reaching 26,036 before closing at 25,806. Volume rose to 9.4 billion shares. Thursday ended with 62% of all stocks falling into the close.
Let’s review the closing technical indicators from Thu May 7 2026 to see what they predict for Fri May 8 2026.
Stock Market Outlook: SPX Closing Chart For Thu May 7 2026
The index closed above all major moving averages and at the Upper Bollinger Band. This is bullish.
The closing candlestick is bearish for Friday signaling stocks are overbought and need to pullback to regain better strength.
The 21 day moving average is rising sharply and closed at 7110. This is bullish.
The 50 day moving average is rising and closed at 6853. This is bullish but below the 100 day moving average.
The 100 day moving average is rising and closed at 6864. Each day that the 100 day is above the 50 day is a sign of underlying weakness to the uptrend.
The 200 day moving average is rising and closed at 6689. This is bullish.
The Lower Bollinger Band is turning higher and has moved above the 200 day moving average. This is bearish. The Upper Bollinger Band is moving higher which is bullish.
The SPX chart is more bullish than bearish for Friday but the closing candlestick is warning of dips for Friday.
SPX Stock Market Outlook review of Thu May 7 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising. This is bullish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Apr 7 2026. On Thu May 7 2026 the up signal lost strength which is bearish.
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Ultimate Oscillator: The Ultimate Oscillator is falling which is bearish.
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Slow Stochastic: The Slow Stochastic has an up signal in place. It is extremely overbought. It is at levels where a pullback should be expected.
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Relative Strength Index: The RSI signal is falling and is at overbought readings.
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| Rate of Change: The rate of change is falling and signaling a higher close is likely. 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. |
Stock Market Outlook: Support and Resistance Levels |
| 7370 is resistance |
| 7350 is resistance |
| 7280 is resistance |
| 7250 is resistance |
| 7230 is resistance |
| 7200 is resistance |
| 7190 is resistance |
| 7175 is resistance |
| 7150 is resistance |
| 7125 is resistance |
| 7100 is resistance |
| 7050 is resistance |
| 7000 is resistance |
| 6950 is resistance |
| 7000 is support |
| 6950 is support |
| 6900 is support |
| 6875 is support |
| 6850 is support |
| 6800 is support |
| 6780 is support |
| 6750 is support |
| 6735 is support |
Stock Market Outlook for Fri May 8 2026
For Fri May 8 2026 the outlook is for the index to slip and close lower no matter what the April unemployment report provides investors. The rally is over stretched and badly in need of a rest. A lower close on Friday is not a bearish trend lower but a sign the rally is overextended.
Potential Economic and Political Market Moving Events
Monday:
10:00 Factory orders for March were a lot higher than estimated coming in at 1.5%
Tuesday:
8:30 Trade balance was slightly les than expected coming in at $60.3 billion.
10:00 Job openings came in at 6.87 million, among the higher end of the estimates.
10:00 New Home sales for March rose to 6.87 million which was above estimates.
9:45 S&P final services PMI came in lower than estimated at 51.0
10:00 ISM services came in lower than estimated at 53.6%
Wednesday:
8:15 ADP employment rose well above estimates at 109,000
Thursday:
8:30 Weekly Initial Unemployment Insurance Claims for May 2 were lower than estimated at 200,000
8:30 US productivity was a lot lower coming in at 0.8%
10:00 Construction spending for March was better than estimated, coming in at 0.6%
3:00 Consumer credit came in as estimated at $12.5 billion