Facebook plunged on Thursday and after hours, Amazon joined in the selling. Apple Stock dipped after earnings were released but after hours it was down 5% which was far less than Amazon and Facebook.
Thursday saw the indexes close at their lows of the day. The S&P lost 23 points, the same as was lost on Wednesday. It closed at 3807. The NASDAQ lost 178 points to end the day at 10892.
Let’s review the closing technical indicators from Thu Oct 27 2022 to see what to expect for Fri Oct 28 2022.
Stock Market Outlook Chart Comments At The Close on Thu Oct 27 2022
On Thursday the S&P closing candlestick was still above the 21 day and just below the 50 day moving average. Intraday the SPX managed to move above the 50 day but quickly fell back. The candlestick is bearish for Friday.
The Bollinger Bands Squeeze is continuing to end which is currently bullish but the Lower Bollinger Band is starting to turn up which at present is neutral.
The 21 day moving average is moving higher which is bullish.
The Upper Bollinger Band is rising which is bullish.
All the remaining moving averages are still falling which is bearish.
There are now 7 down signals in place since April and no up signals.
The chart is 70% bearish for Friday.
Stock Market Outlook review of Thu Oct 27 2022
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 an up signal on Thursday Oct 16. On Thursday the up signal lost some strength. The histogram also lost some strength.
- 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 falling and positive.
- 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 a down signal in place and is still signaling overbought.
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 falling and positive.
- 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 and positive but may end up negative by Friday’s close.
- 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:
3900 is resistance
3875 is resistance
3850 is resistance
3825 is resistance
3800 is resistance
3775 is light resistance
3750 is light resistance
3730 is light support
3700 is light support
3675 is light support
3650 is light support
3625 is light support
3600 is good support and is a decline of 25%
Stock Market Outlook for Tomorrow – Fri Oct 28 2022
After hours on Thursday investors got earnings from Amazon.com and Apple. Both stocks fell after hours. This adds to the tumbling of Alphabet Stock (GOOGL), Microsoft Stock (MSFT) and especially Meta Stock (META) on Thursday. With these 5 big cap stocks tumbling lower, pressure is being brought on the markets.
As well the technical indicators are shifting to weaker readings. For Friday the outlook is for a weaker day and a lower close. The morning has a large number of economic reports that will impact stocks, especially at the start of trading and in the morning.
Potential Market Moving Events
Thursday:
8:30 Real GDP came in at 2,6% ahead of expectations of 2.3%
8:30 Weekly Initial Unemployment Insurance Claims remain strong at 217,000
8:30 Durable goods orders were 0.4% below estimates of 0.7%
8:30 Core Capital equipment orders was -0.7% down from 0.8% prior.
Friday:
A number of inflation reports are released on Friday which will impact the markets.
8:30 PCE Price Index
8:30 Core PCE price index
8:30 PCE price index for 12 months
8:30 Core PCE price index for 12 months
8:30 PCE price index for 3 months
8:30 Core PCE price index for 3 months
8:30 Real disposable income
8:30 Real consumer spending
10:00 Univ of Michigan consumer sentiment index
10:00 Univ of Michigan 5 year inflation expectations
10:00 Pending home sales index
Stock Market Outlook Archives
Stock Market Outlook For Wed May 6 2026 – Choppy But Higher Still
Morning Investing Strategy Notes for Tue May 5 2026
Stock Market Outlook For Tue May 5 2026 – Overbought and Lower
Morning Investing Strategy Notes for Mon May 4 2026
Stock Market Outlook For Mon May 4 2026 – Dips Likely With Possible Lower Close
Morning Investing Strategy Notes for Fri May 1 2026
Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
Morning Investing Strategy Notes for Thu Apr 30 2026
Stock Market Outlook For Thu Apr 30 2026 – Dips Likely Possible Lower Close
Morning Investing Strategy Notes for Wed Apr 29 2026
Stock Market Outlook For Wed Apr 29 2026 – Choppy But Higher Ahead Of More Earnings
Morning Investing Strategy Notes for Tue Apr 28 2026
