On Thursday stocks opened lower as investor nervousness over the 30th anniversary of Black Monday seemed to draw in sellers who decided to take profits, especially with the Dow Jones Index above 23,000. By the end of the day the three indexes had recovered and only the NASDAQ failed to make a new closing high.
S&P 500 Index Close
The S&P index ended up 0.84 to 2562.10
Dow Jones Index Close
The Dow Jones ended up 5.44 to 23,163.04
NASDAQ Index Close
The NASDAQ closed down 19.15 to 6605.07
Stock Market Outlook
Chart Comments At The Close:
On Thursday the S&P dropped and then recovered the decline. The closing candlestick is bearish for Friday. The S&P is continuing to move sideways with a very slight bias to the upside. Without an increase in buyers, the index will pullback to find new buyers while consolidating recent gains.
All the major moving averages and the 21 day moving average are moving higher which is bullish. The Upper Bollinger Band is also moving higher, again bullish for the market.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive but continuing to drop as it has all week.
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 buy signal on Aug 31. The buy signal is almost gone.
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, nbut moving more sideways than up or down.
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 extremely overbought. It is wavering between up and down signals. For Friday the signal is neutral but remains extremely overbought.
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 showing the market is still overbought and it is trending sideways but keeping a bias up.
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 but trending sideways which indicates prices are not expected to change much.
Support Levels To Be Aware Of:
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 Oct 20 2017
Despite the morning drop at the open, there is not a lot of changes to the technical analysis of the S&P for Friday. There are growing signs that the market will dip lower to try to consolidate the recent gains made and to find new buyers. For Friday however, the outlook is still higher. Monday could see the market dip.
There will be negative moments on Friday in the S&P but the close still looks like it could be higher.
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