Stock Market Outlook for Fri Sep 8 2023 – Some Weakness – Bounce Likely – Higher Close

Prior Trading Day Summary

On Thursday stocks opened lower following a surprise drop in the Weekly Initial Unemployment Insurance Claims to 216,000 instead of the expected 230,000. In other words more people found jobs than estimated. Analysts were quick to jump on the rising inflation and rising interest rate band wagon once again. Into this came word that Chinese authorities were banning the iPhone use from inside various government buildings, an obvious political move against the USA. That sent Apple Stock lower which resulted in other tech names tumbling as well including NVIDIA Stock (NVDA).

By the close though the index fought its way back to the important 4450 level, closing down just 14 points at 4451.

The NASDAQ lost 123 points to close at 13,748.

The Dow Jones closed positive.

Let’s review the SPX from Thu Sep 7 2023 to see what to expect for Fri Sep 8 2023.

Stock Market Outlook: SPX Closing Chart For Thu Sep 7 2023

The index closed below the 50 day and 21 day moving average. Both are bearish signals.

The closing candlestick on Thursday though is signaling a bullish bounce could be on tap for Friday, or at least some of Friday.

The 50, 100 and 200 day moving averages are continuing to climb which is bullish.

The Lower Bollinger Band however is clinging to the 100 day which is bearish. The Upper Bollinger Band is falling. This is bearish and a Bollinger Bands Squeeze is likely by Monday.

Stock Market Outlook review of Thu Sep 7 2023

Stock Market Outlook: Technical Indicators Review

Stock Market Outlook for Fri Sep 8 2023 

For Friday the technical indicators are all negative except for the Moving Average Convergence / Divergence which has a bit of strength still left. The rest of the indicators are falling with several starting to show signs of weariness and ready for a bounce. The SPX chart is also pointing to a possible bounce back attempt. Overall conditions are poor for the bulls at present but the index continues to hold the 4450 valuation. A close below 4450 will signal a move down to 4425 and then 4400 which should see some buyers step back in. A bounce on Friday though will find traders interested, but overall we will probably see more selling next week and better indicators of whether the index can hold or will have to move lower to find buyers. A break in oil prices would definitely help the bulls right now.

For Friday watch for a bounce attempt but stay cautious until next week, to see if any bounce has staying power.

Potential Economic and Political Market Moving Events

No event on Friday is expected to swing markets. That actually could be good for the bulls.

Friday:

10:00 Wholesale inventories are expect to be -0.1%, up from the prior month’s -0.5%

3:00 Consumer credit is expected to drop to $16 billion from $17.9 billion prior