Stock Market Outlook for Fri Nov 19 2021 – Dips Likely But Still Higher Close

Thursday saw an early morning drop to the 4675 level which immediately found buyers. That ended up being the low for the day and the S&P pushed higher to close at $4704, leaving the S&P back above the 4700 level and with a new record close.

The NASDAQ also rose throughout the day on Thursday and ended up 72 points to close just below 16,000 at 15,993.

Let’s review the closing technical indicators to see what we should expect for Friday.

Stock Market Outlook Chart Comments At The Close on Thu Nov 18 2021 

The close on Thursday left behind a bullish candlestick for Friday. The candlestick often signals a bounce should be expected for the following day (Friday).

The Lower Bollinger Band is still rising above the 50 day which is bearish. The Upper Bollinger Band is trending sideways which is bearish.

The 21, 100 and 200 day moving averages are all climbing. This is bullish. The 50 day is not climbing which is bearish.

For Friday the chart is still more bearish than bullish for a seventh trading day.

Stock Market Outlook review of Thu Nov 18 2021

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 a down signal on Wed Nov 17 2021 . On Thursday the down signal was confirmed.

• 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.

• 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 for Friday.

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.

• 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 falling.

• 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:

4700 is resistance

4655 is resistance

4600 is resistance

4550 is light support

4525 is light support

4500 is support

4490 is support

4475 is support

4450 is support

4400 is support

4370 is light support

4350 is light support

4300 is light support

 Stock Market Outlook for Tomorrow – Fri Nov 19 2021 

The technical signals are mixed for Friday. The Moving Average Convergence / Divergence indicator has confirmed yesterday’s down signal but the Rate Of Change is back rising along with the Ultimate Oscillator and the Slow Stochastic.

Friday will see some dips but the closing candlestick on Thursday is pointing to a bounce on Friday and a potentially higher close. That outlook is also confirmed by the Rate Of Change, Ultimate Oscillator and Slow Stochastic.

For Friday then, stay cautious around dips but the close should be higher to end the week.

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