Thursday was choppy for the markets but in general they moved sideways as most investors were on hold awaiting Friday’s bank earnings, which are released before markets open. The Dow made another new all-time high and the NASDAQ and S&P continued to grind higher coming closer to their all-time highs.
S&P Index Close
The S&P index ended the day up 4.58 points to 2,447.83 nearing the all-time high of 2453.82
Dow Jones Index Close
The Dow Jones ended up 20.95 closing at a new closing higher of 21553.09.
NASDAQ Index Close
The NASDAQ closed up 13.27 points to 6,274.44 nearing the all-time high of 6,341.70
Stock Market Outlook
Chart Comments At The Close:
The S&P closed higher on Thursday reaching the Upper Bollinger Band. This is the second day pushing higher above the 21 day moving average. The closing candlestick is indecisive for Friday. The Bollinger Bands Squeeze continues to show signs of ending with the index moving higher. The 50, 100 and 200 day moving averages are all climbing which is bullish. The 2425 level continues to hold the market up.
SPX closing on Jul 13 2017
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum stayed positive on Thursday but did move lower. A lot of this was due to lower volume ahead of bank earnings on Friday.
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) has issued a sell signal on June 20. Today, MACD turned neutral but the histogram turned positive on the S&P for Friday.
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 rising.
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 continues with a strong up signal.
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 rising and moving into overbought signals..
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 but trending sideways which indicates no great change in prices are to be expected.
Support Levels To Be Aware Of:
The market has developed good support at 2425 and light support at 2400, 2380, 2350 and 2300.
Stock Market Outlook for Tomorrow – Friday Jul 14 2017
On Thursday, earnings from Delta Air Lines disappointed and that dampened the mood of investors. Most decided to step to the sidelines and wait for bank earnings which are set to be released on Friday before the markets open.
For Friday, the opening and early morning trading will depend on those bank earnings. If they meet or exceed estimates the market will move higher quickly. If they do not beat estimates the market will be soft to start. However the technical indicators are still advising that dips are trading opportunities as the S&P should continue to grind its way higher.
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