Monday June 26 saw oil prices rise slightly while gold fell to a 6 week low. Of all the sectors on Monday, the Utilities and Telecommunications stocks were the best performing while technology stocks dropped back following the most recent recovery efforts after the tech sector collapses earlier in June. Many analysts believe that with utilities doing well, the market is signaling a recession is coming this year. We have however heard that reasoning before today.
S&P Index Close
The S&P index ended the day up 0.77 to close at 2439.07
Dow Jones Index Close
The Dow Jones ended up 14.79 at 21,409.55
NASDAQ Index Close
The NASDAQ closed down 18.10 at 6247.15
Stock Market Outlook
Chart Comments At The Close:
The S&P is still above the important 2425 level. Meanwhile the index closed just above the 21 day moving average again on Monday. You can also see that the Bollinger Bands Squeeze is continuing to take effect. All the major moving averages are still rising which is bullish. The closing candlestick on Monday is neutral on the outlook for Tuesday.
S&P review of June 26 2017
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is slightly positive and trying to rise.
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. On Monday the sell signal strengthened further.
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 negative and falling lower.
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 issued a buy or up signal at the close of trading on Monday.
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 was sideways on Monday, from Friday’s readings.
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 continuing to move lower.
Support Levels To Be Aware Of:
The market has light support at the 2425, 2400, 2380, 2350 and 2300 levels.
Stock Market Outlook for Tomorrow – Tue Jun 27 2017
For Tuesday, we have a new buy signal from the Slow Stochastic indicator. However the MACD sell signal continued to gain strength and the Ultimate Oscillator fell into negative signals.
The market now has one buy signal, one sell signal and one rising momentum signal. The other signals are either sideways or falling.
This keeps the outlook for stocks on Tuesday at sideways with a bias lower which is unchanged from Monday’s outlook.
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