Monday Matt followed the anticipated direction with the market experiencing a number of dips as it pushed higher. The weakness was evident throughout the day but the markets all managed to continue to move higher.
S&P Index Close
The S&P index ended the day up 12.29 points to close at 2394.02
Dow Jones Index Close
The Dow Jones ended up 89.99 to close at 20,894.83
NASDAQ Index Close
The NASDAQ closed up 49.92 points to end the day at 6133.62
Stock Market Outlook
Chart Comments At The Close:
On Monday a number of events are worth keeping an eye on. First we have the S&P back above the 21 day moving average. We also have the Bollinger Bands moving together to begin to form a probable Bollinger Bands Squeeze. This could send stocks higher but at present the remaining technical indicators are undecided with most of them still negative. The closing candlestick on Monday was bullish for Tuesday. All the major moving averages are climbing higher whish is also bullish.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is negative but is climbing.
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 sell signal on May 17 2017. The sell signal continues to be reasonably strong.
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 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 an up signal now in place.
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 moving sideways indicating no real change in pricing 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 bouncing higher from an oversold reading.
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 down signal still in place but it is close to issuing a buy signal or up signal.
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 23 2017
For Tuesday the technical indicators are not as bearish as they were for Monday’s open, but they are still not bullish either. They remain strongly biased to the negative despite the three days of the market moving higher.
The outlook for Tuesday then is unchanged from Monday. There is still a very strong possibility of weakness during the day and more than once, as we saw on Monday. However the close should still be higher, even if only slightly.
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