What Happened On Fri Dec 8 2017
The move higher on Friday was started by better than expected payroll numbers that probably lock in the next interest rate increase which will be in December. The Dow and S&P rose half a percent and the NASDAQ managed a 0.40% gain although it was higher earlier in the day.
Closing Statistics for Fri Dec 8 2017
S&P 500 Index Close
The S&P index ended up 14.52 2651.50
Dow Jones Index Close
The Dow Jones ended up 117.68 to 24,239.16
NASDAQ Index Close
The NASDAQ closed up 27.24 to 6840.08
Stock Market Outlook – Review of Dec 8 2017
Chart Comments At The Close:
On Friday the S&P moved higher by just over half a percent placing it within easy striking distance of the all-time high of 2665.19. The close saw the index still below the Upper Bollinger Band but moving higher, away from the 21 day moving average. The closing candlestick was bullish to start off the second week of December. All the major moving averages are continuing higher.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive and rising.
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 on Nov 28. The up signal is back gaining strength.
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 signal is negative.
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 in place for Monday.
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 turned higher on Friday.
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 higher again on Friday.
Support Levels To Be Aware Of:
The 2600 is building some light support.
There is good support at the 2550 level which could assist in keeping the index up for December.
The S&P has light support at 2480. It also has light support at 2450 and good support at 2425. Below that there is some support at 2400, 2380, 2350. 2300 has the most support at present.
Stock Market Outlook for Tomorrow – Mon Dec 11 2017
Friday’s market has just one negative indicator, the Ultimate Oscillator. All the other indicators are moving higher and gaining strength to the upside. The S&P should end the day on Monday higher.
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