On Tuesday stocks wandered in and out of positive and negative valuations but by the close of the day The S&P and NASDAQ were positive and the Dow was negative.
S&P Index Close
The S&P index ended the day up 1.47 to close at 2460.61
Dow Jones Index Close
The Dow Jones ended down 54.99 at 21,574.73
NASDAQ Index Close
The NASDAQ closed up 29.87 points for the best showing among the three indexes. It closed at 6,344.31
Stock Market Outlook
Chart Comments At The Close:
The S&P closed at a new all-time high on Tuesday. You can see in the chart that it managed to hold onto the Upper Bollinger Band, although Monday’s close saw a negative candlestick. Tuesday’s close saw a positive candlestick for Wednesday. The Bollinger Bands Squeeze is ended. The index is back above the 21 day moving average. The three major moving averages are continuing to climb.
Stock Market Outlook from Tue Jul 18 2017
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum was positive.
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 July 14. It was confirmed on Monday and the signal is stronger again today. You can see the MACD histogram is rising.
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 has a weak up signal in place but is also advising that the market is overbought and we could get a sell signal from the Slow Stochastic by tomorrow.
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 and climbing.
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 – Wed Jul 19 2017
For Wednesday there are a number of signals that the market is becoming overbought, but all the technical indicators are also advising that they are climbing.
This indicates that the stock market is not expected to pullback but instead should continue to try to climb further on Wednesday. The bias continues to remain up for stocks even if or broadly based.
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