On Thursday the S&P tried to make another new high following Wednesday’s new all-time high. However oil slid lower which hurt energy shares and the dollar moved lower which also hurt equities.
This put pressure on stock indexes which still managed to close positive but in essence the day ended with flat indexes almost unchanged from Wednesday.
S&P 500 Index Close
The S&P index ended up 3.02 to 2510.06
Dow Jones Index Close
The Dow Jones ended up 40.49 to 22,381.20
NASDAQ Index Close
The NASDAQ closed up 0.19 to 6453.45
Stock Market Outlook
Stock Market Outlook review of Thu Sep 28 2017
Chart Comments At The Close:
The S&P on Thursday closed just below the all-time high and left behind a bullish candlestick. However this candlestick often signals that weakness will continue throughout the day.
The 100 and 200 day moving average are continuing to climb.
The 21 day moving average is still rising but if you look closely at the Bollinger Bands you can see that the Lower Bollinger Band is moving higher and could be getting ready to signal a Bollinger Bands Squeeze. That’s something to keep an eye on for the start of October.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive and rising.
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 was weak 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 moving back toward being overbought.
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 has an up signal in place and is 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 overbought.
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 still climbing but trending more sideways than higher. This indicates not a lot of change in prices is expected for the next couple of days.
Support Levels To Be Aware Of:
The S&P is trying to build 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 – Friday Sep 29 2017
For Friday investors should expect another choppy day with weakness, probably more dominant in the morning and mid-afternoon.
Technical indicators are still positive but many are now overbought which means more chance for dips. Any dips though are still opportunities to place more trades as the underlying direction still is up.
Friday should see some negative movements but a higher close is expected.
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