The stock market outlook for Tuesday was for stocks to bounce and then move lower. Instead stocks bounced but kept on moving higher. By the end of the day all three indexes closed near their day’s highs. So what happened? Why did stocks put in such a massive rally?
Analysts picked a number of reasons by the time the markets closed. These includied German growth picked up in the latest quarter. England may not leave the EU after all as the vote nears, it appears the “stay” side is gaining strength. New home sales hit an 8 year high which also seemed to confirm that housing has recovered from the Great Recession. Last was the outlook that perhaps Fed interest rate increases would not hurt the market after all since a rate increase would point to the economy improving. This means companies should earn even more which could push stocks higher in upcoming quarters.
Whatever reason investors decide to pick, I think it remains important to use strategies that can continue to keep profits building in portfolios and protect capital against a possible downturn, while the market decides where to move next.
S&P Index Close
The S&P closed at 2076.06 up 28.02 points for a 1.37% gain.
Dow Jones Index Close
The Dow Jones closed up 213.12 points to 17,706.05 for a 1.22% gain.
NASDAQ Index Close
The NASDAQ closed up 95.27 points for a 2% gain.
Stock Market Outlook – Advance Decline Numbers
Volume on Tuesday picked up in the afternoon to 3.6 billion shares. This is an average day for 2015 and 2016. Of those shares traded 71% were moving higher by the close and 29% were falling. 74% of all stocks were rising by the close and 22% were falling. New highs moved back up to 77 and new lows fell to 18.
The NASDAQ traded 1.9 billion shares which is slightly below average. 77% of all volume was moving higher while 14% was moving lower. 76% of all stocks listed on the NASDAQ were rising while 21% were falling. New highs rose to 82 while new lows were unchanged at 37.
Special Commentary For Members
The rest of tonight’s stock market outlook is for FullyInformed members. The stock market outlook has been expanded to include a number of topics, some trading tips for the next couple of days and 5 trade ideas that I am considering for Wednesday.
Members Only Stock Market Outlook Special Commentary for May 25 2016
FullyInformed Members can read the Stock Market Outlook and special commentary, directly through this link. Members can also sign in to the Members’ site here. Non-members can join here or read about the benefits of a membership.
Stay FullyInformed With Email Updates
Market Direction Internal Links
Profiting From Understanding Market Direction (Articles Index)
Understanding Short-Term Signals
Market Direction Portfolio Trades (Members)
Market Direction External Links
IWM ETF Russell 2000 Fund Info
Market Direction SPY ETF 500 Fund Info