The Stock Market Outlook for Thu Nov 2 2017 was for some weakness but for markets to regain their footing and close higher, even just slightly. Markets were weak but by the close of the day the Dow Jones was at new highs, the S&P was up just a fraction and the NASDAQ was down just a fraction. Friday we get the jobs numbers from October.
S&P 500 Index Close
The S&P index ended up 0.49 to 2579.85
Dow Jones Index Close
The Dow Jones ended up 81.25 to 23,516.26
NASDAQ Index Close
The NASDAQ closed down 1.59 to 6714.94
Stock Market Outlook
Stock Market Outlook for Friday Nov 3 2017
Chart Comments At The Close:
There was not a lot of change on Thursday but the weakness in the morning did set the indexes up for a recovery and possibly a higher day on Friday. The closing candlestick on the S&P was bearish for Friday but as we have seen for much of the past week, there have repeatedly been bearish candlesticks. Yet every dip, no matter how slight has been quickly bought into.
What was interesting during the day was the dip took the S&P almost down to the 21 day or Middle Bollinger Band. That was the steepest dip this week and it brought in higher volumes and more buyers.
The Bollinger Bands Squeeze is continuing and while there are no clear signals which way the market will turn, there are some hints that it will be higher. The new Fed Chair pick saw markets react positively and the news on tax reform was also positively received by investors.
All the major moving averages are continuing to rise which is bullish.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive, unchanged or moving sideways.
MACD Histogram: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) issued a sell signal on Oct 24. The sell signal was weak and unchanged again on Thursday.
Ultimate Oscillator: 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. The Ultimate Oscillator is positive, and unchanged.
Slow Stochastic: 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. The Slow Stochastic is sitting with a neutral stance on the market.
Relative Strength Index: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It often is the first indicator to show an overbought or oversold signal. The RSI signal is unchanged.
Rate of Change: 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. The rate of change signal is positive and moved slightly lower.
Support Levels To Be Aware Of:
There is support building at the 2550 level which could assist in pushing the index higher into November.
The S&P has light support at 2480. It has light support at 2450 and good support at 2425. There is also light support at 2400, 2380, 2350 and 2300.
Stock Market Outlook for Tomorrow – Fri Nov 3 2017
Technically most signals are still sitting sideways. There is now just one down signal.
Friday we get non-farm payroll numbers for October. I am expecting the numbers to be good and the market should move higher.
Technically the market is now set to move higher following today’s dip to the 21 day moving average. Buying was swift on the dip and volume picked up. Friday should be higher.
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