Monday saw stocks jump higher on the back of oil prices rising, tech stocks moving higher, financial stocks climbing and strong housing data.
S&P Index Close
The S&P index ended the day up 11.42 points to close at 2402.32
Dow Jones Index Close
The Dow Jones ended up 85.33 to close at 20,981.94
NASDAQ Index Close
The NASDAQ closed up 28.44 points to end the day at 6149.67
Stock Market Outlook
Chart Comments At The Close:
The market continues to move sideways, but pushed above 2400 and closed above it. The closing candlestick is bullish for Tuesday and the 21 day is still climbing as is the lower Bollinger Bands. All of this is bullish for the S&P however the index needs to build strength above the 2400 level which may be difficult to do at the present time as earnings season is more than half-way through.
Stock Market Outlook review of May 15 2017
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum remains positive and is starting to climb.
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 Apr 24 2017. The buy signal was almost gone on Monday by the close despite the S&P moving above 2400.
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 fairly strong down signal in place for Tuesday.
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 starting to climb which often signals a change is prices to higher valuations 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 positive and has bounced back higher.
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 a weak down signal in place and is showing the market as extremely overbought.
Support Levels To Be Aware Of:
The market has light support at the 2380 level, 2350, 2300 and the 2250 level. There is also light support at 2195 but better support is at 2180 and then 2150.
Stock Market Outlook for Tomorrow – Tue May 16 2017
For Tuesday there are two down signals in place still, and 5 signals still pointing up for stocks. Overall the move higher on Monday was great to see, but investors need confirmation that 2400 can become a floor. At present that looks unlikely. Technically, Tuesday looks like stocks will stay sideways but keep a slight up bias. A drop below 2400 during the morning is definitely anticipated. The close should be still above 2400.
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