Friday was a slow day for the indexes with all the indexes moving primarily sideways. Only the NASDAQ managed to keep an upward bias and by the end of the day, it closed slightly positive. The Dow Jones and S&P indexes closed slightly negative.
S&P Index Close
The S&P index ended the day down just 1.99 to 2294.69
Dow Jones Index Close
The Dow Jones ended down 7.13 to close at 20,093.78
NASDAQ Index Close
The NASDAQ closed up 4.6 points to 5660.78
Stock Market Outlook
Stock Market Outlook review of Jan 27 2017
Chart Comments At The Close:
The Bollinger Bands Squeeze is over and the S&P index is clinging to the Upper Bollinger Band. All the moving averages are climbing. The closing candlestick on Friday was once again, neutral.
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:
Stock Market Outlook technical review of Jan 27 2017
There are no changes in the technical indicators on Friday, from Thursday’s readings.
Momentum: For momentum I use a 10 period when studying market direction. Momentum is still positive but moving sideways.
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 sell signal Dec 23 2016. An unconfirmed buy signal was generated Jan 26 and not confirmed on Friday although it was still positive.
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 signaling that the market is 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.
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 and moving sideways.
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. It is overbought.
Fast Stochastic: For the Fast Stochastic I use the K period of 20 and D period of 5. These are not default settings, but settings I use for the 1 to 3 month S&P 500 chart when I have it set for daily views. The Fast Stochastic has an up signal in place and is overbought.
Stock Market Outlook for Tomorrow – Monday Jan 30 2017
There are no negative technical indicators after the close on Friday Jan 27. MACD still has an unconfirmed buy signal in place but was positive again on Friday.
We could see some weakness in the markets from the weekend news on the immigration issue but Sunday night with more clarity being offered on Visas and Green Cards, the market should take it in strike.
Overall I am expecting a similar day on Monday as we saw both Thursday and Friday. Within the weakness though there are strong undercurrents for pushing stocks higher.
Technically the stock markets are still in good shape for the start of the first week of February. By mid-week though, if stocks have not advanced we could see some further selling.
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