Prior Trading Day Summary
On Fri Dec 19 2025 stocks moved higher thanks in part to quadruple witching which normally sees higher volume and swings intraday.
The S&P closed up 59 points to 6834 just 6 points below the intraday high. This is bullish. Volume was 9.0 billion due to quadruple witching. 50% of all stocks were rising. For the week the SPX was up just 7 points.
The NASDAQ rose 301 points to close at 23,307. Volume hit 13.4 billion, with 58% of all stocks on the index rising. For the week the NASDAQ was up 112 points.
Friday’s numbers were excellent on both indexes showing bullish signals.
Let’s review the closing technical indicators from Fri Dec 19 2025 to see what we should expect for Mon Dec 22 2025 to start the fourth week of December. This is a shortened week and historically, bullish.
Stock Market Outlook: SPX Closing Chart For Fri Dec 19 2025
The index closed below the Upper Bollinger Band but above all the major moving averages. This is bullish.
The closing candlestick is bullish for the start of the shortened Christmas holiday week.
The 21 day moving average rose on Friday and closed at 6797. The 21 day is continuing to climb above the 50 day moving average. This is bullish.
The 50 day moving average is rising and closed at 6767 which is bullish.
The 100 day moving average is rising and closed at 6621 which is bullish.
The 200 day moving average is rising and closed at 6376 which is bullish.
The Lower Bollinger Band is turning higher and is above the 100 day moving average. This is bullish. The Upper Bollinger Band is falling which is bearish. They could be a Bollinger Bands Squeeze later this week but more likely, next week.
By the close on Friday the SPX chart is more bullish than bearish to start the fourth week of December.
SPX Stock Market Outlook review of Fri Dec 19 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising but negative which is bearish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Tue Dec 16 2025. The down signal was weaker on Fri Dec 19 2025.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is oversold.
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Relative Strength Index: The RSI signal is rising.
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| Rate of Change: The rate of change is rising signaling a higher day for Monday. 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. |
Stock Market Outlook: Support and Resistance Levels |
| 6925 is resistance |
| 6900 is resistance |
| 6875 is resistance |
| 6850 is resistance |
| 6800 is resistance |
| 6775 is resistance |
| 6750 is resistance |
| 6715 is resistance |
| 6700 is resistance |
| 6675 is support |
| 6650 is support |
| 6625 is support |
| 6600 is support |
| 6590 is support |
| 6570 is support |
| 6550 is support |
| 6500 is support |
Stock Market Outlook for Mon Dec 22 2025
The shortened Christmas week tends to be bullish. Going back through my records to 1977 the S&P has been bullish and ended higher 82% of the time. As well, the technical indicators are all shifting to the bullish side. Only the momentum and MACD signals are bearish and both of them are seeing their bearish signals weaken.
For Monday slight dips could occur but the outlook is for the SPX to continue higher.
Potential Economic and Political Market Moving Events
Monday:
No reports released