On Monday stock indexes were weak right from the open and stayed that way throughout the day. By the close only the NASDAQ had turned positive. However the losses on Monday were slight and basically wiped out the gains from Friday. The NASDAQ closed at another new record high.
Two sectors on the S&P that pulled back on Monday were oil and financials. By the close the S&P energy sector was down 1.5 percent and financials were down 0.8 percent.
S&P Index Close
The S&P index ended the day down 8.08 which basically was Friday’s move higher. The index closed at 2268.90.
Dow Jones Index
The Dow Jones closed down 76.42 points after being up on Friday by 64.51. The Dow ended the day at 19,887.38.
NASDAQ Index Close
The NASDAQ closed up 10.76 adding to Friday’s 33.12 points rise, setting yet another new record close at 5531.82.
Stock Market Outlook
SPX TO JAN 9 2017
Chart Comments At The Close:
Of most interest tonight is the Bollinger Bands Squeeze that has formed. The index is showing some signs of stress heading into the Bollinger Bands Squeeze which could send the index lower. All the major moving averages are still climbing in support of the S&P pushing higher but the Bollinger Bands are indicating that the rally may be at a crossroad. Whether that crossroad will see it move lower, higher or sideways is not yet known but investors should be aware of the pattern. Looking back to December 13 when the S&P closed at 2271.72, you can see that the S&P is actually trending sideways, not higher.
Support Levels To Be Aware Of:
The market has been trying to build support at the 2250 level. There is light support at 2195 but better support is at 2180 and then 2150.
Stock Market Outlook: Technical Indicators:
A number of indicators this evening to be aware of include MACD which still has a sell signal in place, momentum that is only slightly positive and the Slow Stochastic that is overbought and has a neutral signal at the close on Monday. Both Stochastic indicators, Fast and Slow, could issue sell signals on Tuesday if the S&P slips lower.
Stock Market Outlook for Tomorrow – Tuesday Jan 10 2017
For Tuesday Jan 10 2017, the S&P is continuing to warn of weakness that has been building over the past few days. While the NASDAQ did move to another new record close on Monday, the number of stocks that enjoyed the rally were outpaced by declining issues which indicates the rally on the NASDAQ despite the market moving higher, is narrowing.
For Tuesday watch for more weakness to develop but the bias of the market still remains to the upside.
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