On Friday the S&P made another new closing higher reaching 4128 by the close of the day.
The index moved up 31 points for a gain of three-quarters of a percent. The index remains extremely overbought for Monday.
Stock Market Outlook Chart Comments At The Close on Fri Apr 9 2021
The Upper Bollinger Band is continuing to rise which is bullish. The index on Thursday closed again at the Upper Bollinger Band which is a signal of an overbought market. This is the fourth overbought signal from the SPX chart and shows an extremely overbought index.
The Lower Bollinger Band is no longer rising but starting to lower, again a sign of an overbought market.
The closing candlestick on Friday is bullish for Monday.
The 21 day moving average is climbing higher away from the 50 day moving average which is bullish.
The 50, 100 and 200 day moving averages are all climbing higher.
Overall the S&P chart is very bullish and signaling overbought for a third straight day.
Stock Market Outlook review of Fri Apr 9 2021
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is positive but trending sideways.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Monday March 29 2021. On Friday the up signal was very strong again.
- Settings: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9.
Ultimate Oscillator: The Ultimate Oscillator is trending sideways and signaling overbought.
- Settings: 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.
Slow Stochastic: The Slow Stochastic has an up to neutral signal in place and is extremely overbought.
Settings: 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.
Relative Strength Index: The RSI signal is rising and overbought.
- Settings: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It is often the first indicator to show an overbought or oversold signal.
Rate of Change: The rate of change signal is trending sideways.
- Settings: 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. With the Rate Of Change, prices are rising when signals are positive. Conversely, prices are falling when signals are negative. As an advance rises the Rate Of Change signal should also rise higher, otherwise the rally is suspect. A decline should see the Rate Of Change fall into negative signals. The more negative the signals the stronger the decline.
Support and Resistance Levels To Be Aware Of:
4070 is very light support
4050 is light support
4000 is Support
3900 is support and the 50 day is just below this.
3850 is support
3800 is support
3750 is good support and the 100 day is just above this level
3700 is light support
3680 is light support – The 100 day moving average is at this valuation.
3600 is strong support and the 200 day is at this level.
Stock Market Outlook for Tomorrow – Mon Apr 12 2021
For a Monday the technical indicators are signaling that the index is very overbought.
On Friday, despite the index climbing three-quarters of a percent, many of the technical indicators turned sideways, which indicates the advance on Monday will be difficult.
Monday will see dips, some of which could be deeper than anticipated. The close though still has a chance to be positive but with the index extremely overbought, there is a better chance for a negative close.
No matter whether the close is negative on Monday, the trend is still bullish for stocks to start the second week of April.
Stock Market Outlook Archives
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Morning Investing Strategy Notes for Tue May 5 2026
Stock Market Outlook For Tue May 5 2026 – Overbought and Lower
Morning Investing Strategy Notes for Mon May 4 2026
Stock Market Outlook For Mon May 4 2026 – Dips Likely With Possible Lower Close
Morning Investing Strategy Notes for Fri May 1 2026
Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
Morning Investing Strategy Notes for Thu Apr 30 2026
Stock Market Outlook For Thu Apr 30 2026 – Dips Likely Possible Lower Close
Morning Investing Strategy Notes for Wed Apr 29 2026
Stock Market Outlook For Wed Apr 29 2026 – Choppy But Higher Ahead Of More Earnings
Morning Investing Strategy Notes for Tue Apr 28 2026
