The technology sector fell another half a percent on Thursday although there are signs the sellers are tiring. Meanwhile the dollar rose to its highest level in two weeks against major currencies. Crude oil continued its decline keeping pressure on energy stocks as the price of oil fell another half a percent as Libya and Nigeria continue to bring more oil to market while OPEC countries work to curtail oil production. Selling was heaviest in the morning and by the close indexes were well off their lows.
S&P Index Close
The S&P index ended the day down 5.46 points to close at 2432.46
Dow Jones Index Close
The Dow Jones ended down 14.66 points to 21,359.90
NASDAQ Index Close
The NASDAQ closed down 29.39 points to end the day at 6165.50
Stock Market Outlook
Chart Comments At The Close:
The S&P index fell to the 231 day moving average in the early morning which sparked some buying interest leading to a bounce off the 21 day. The closing candlestick remains bearish for Friday. All the moving averages are continuing to rise despite the recent weakness.
SPX Technical Review June 15 2017
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive but only slightly. It is now more neutral than positive or negative.
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 May 25 2017. An unconfirmed sell signal was issued today at the close.
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 moving sideways.
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 which is more neutral than up or down.
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 is moving sideways, indicating no major change in prices, up or down is expected.
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 moving lower.
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 very overbought.
Support Levels To Be Aware Of:
The market has light support at the 2400, 2380, 2350, 2300 and the 2250 levels. There is also light support at 2195 but better support is at 2180 and then 2150.
Stock Market Outlook for Tomorrow – Friday Jun 16 2017
For Friday the technical indicators are not as beaten up as those of the NASDAQ. Only MACD has a defined sell signal in place. For Friday weakness will hang around but we could see stock indexes try to move toward a positive close, even if only slightly. In general though, the technical indicators are advising that the market indexes have more room to fall before they stabilize, even if Friday sees the markets try to recover. For now the bias is lower for stock indexes.
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