Prior Trading Day Summary
On Friday stocks had a bit of a roller coast day thanks to comments from Fed Chair Powell early morning indicating further interest rate hikes are likely to continue combating inflation. As the day wore on though, investors decided that while there could be more interest rate hikes, the bulk of hikes were behind them. That was enough to bring buyers back who sifted through stocks and snapped up many that were beaten down over the past several days of selling.
For the day both indexes closed higher and ended the week positive.
The S&P gained 29 points to close at 4405, bring the index back to the important 4400 support level.
The NASDAQ rose 126 points for almost a 1% gain and ending the day at 13,590.
On the day, NVIDIA Stock (NVDA) closed down $11.45 to $460, ending the week with losses despite stellar earnings just two days earlier. The stock had been above $510 Thursday morning but closed on Friday down 10% from Thursday’s morning high.
Let’s review the SPX index from Friday to see what to expect for Mon Aug 28 2023 to start the final week of August.
Stock Market Outlook: SPX Closing Chart For Fri Aug 25 2023
The index stayed above the 100 day moving average on Friday but failed to break above the 50 day moving average. It did however close at 4400 which is good support for the SPX.
The closing candlestick on Friday is bullish to start off the final week of August.
The 21 day moving average continued falling an fell to the 50 day moving average on Friday. On Monday it could continue to drop.
The 100 and 200 day moving averages are continuing to climb which is bullish but the 50 day is turning sideways.
The Lower Bollinger Band is still falling which is bearish. It fell below the 100 day moving average. The Upper Bollinger Band is moving lower which advises that more downside lies ahead.
Stock Market Outlook review of Fri Aug 25 2023
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and negative. It is no longer oversold.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thursday Jul 27. On Fri Aug 25 the down signal lost a lot of strength.
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Ultimate Oscillator: The Ultimate Oscillator is rising and negative. It is no longer oversold.
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Slow Stochastic: The Slow Stochastic has a weak up signal in place. It is leaving oversold but signaling there could be another dip this week.
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Relative Strength Index: The RSI signal is rising and nearing an up signal.
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Rate of Change: The rate of change signal is rising and slightly over-sold.
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Stock Market Outlook: Support and Resistance Levels |
| 4600 is resistance |
| 4575 is resistance |
| 4550 is resistance |
| 4525 is resistance |
| 4500 is resistance |
| 4485 is resistance |
| 4470 is resistance |
| 4450 is resistance |
| 4435 is resistance |
| 4420 is resistance |
| 4400 is support |
| 4390 is support |
| 4370 is support |
| 4350 is support |
| 4340 is support |
| 4325 is support |
| 4310 is support |
| 4300 is support |
| 4290 is support |
| 4275 is support |
| 4250 is support |
| 4240 is support |
| 4225 is support |
| 4210 is support |
| 4200 is good support |
Stock Market Outlook for Mon Aug 28 2023
For Monday stocks could see some choppiness and some selling especially in the morning but the afternoon should see the index climb and close positive on the day.
Potential Economic and Political Market Moving Events
This week’s major events are retail inventories on Wednesday and CPI on Thursday. Friday we get the non-farm payroll numbers for August.
Monday:
There are no events