Prior Trading Day Summary:
On Friday investors pushed stocks to a new all-time high breaking through the high set in January 2022.
Volumes rose slightly on both exchanges with 4.3 billion shares traded on New York and 5.7 billion on the NASDAQ.
New lows rose on the NASDAQ to 221 but new highs also rose to 198. On New York new highs rose to 118, the highest number since the end of December.
The SPX closed up 58 points to 4839 and the NASDAQ rose 255 points to close at 15,310 but is still below it’s high of 16212.23 made Nov 22 2021.
Let’s review Fri Jan 19 2024 closing technical indicators to see what to expect for the start of the 4th week of January.
Stock Market Outlook: SPX Closing Chart For Fri Jan 19 2024
The index closed above the Upper Bollinger Band at a new all-time high which is bullish.
The 21 day moving average is moving higher which is bullish.
The closing candlestick is bullish for Monday but signals there will be some selling and a probable dip.
The 50 day moving average is above the 100 day and still climbing which is bullish.
The 100 and 200 day moving averages are climbing which is bullish. The 200 day is moving above the 4400 on the SPX which is bullish.
The Bollinger Bands Squeeze is still underway with the Lower Bollinger Band turning lower. The Upper Bollinger Band is moving higher which is bullish. The signal now looks like stocks will move higher out of the Bollinger Bands Squeeze.
The S&P chart is bullish for the start of the week.
Stock Market Outlook review of Fri Jan 19 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Tue Jan 2. The down signal was almost gone on Friday.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive. It is entering overbought.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is moving back to overbought.
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Relative Strength Index: The RSI signal is rising sharply and overbought.
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Rate of Change: The rate of change signal is rising and positive. It is signaling a higher day on Monday is expected.
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Stock Market Outlook: Support and Resistance Levels |
| 4875 is resistance |
| 4850 is resistance |
| 4825 is resistance |
| 4815 is resistance |
| 4800 is resistance |
| 4780 is resistance |
| 4750 is support |
| 4720 is support |
| 4700 is support |
| 4675 is support |
| 4650 is support |
| 4625 is support |
| 4600 is support |
| 4590 is support |
| 4575 is light support |
| 4565 is light support |
| 4550 is support |
| 4535 is support |
| 4520 is support |
| 4500 is support |
Stock Market Outlook for Mon Jan 22 2024
For Monday the index starts the day at a new all-time high which is bullish. Signals are all turning bullish and the MACD technical indicator has lost most of the down signal. There are two new support levels following Friday’s close. The 4720 and 4750 levels are now support.
For Monday the day will see some selling but overall the day will see another new closing high.
This week stocks enter the “height” of quarterly earnings with many “big name” stocks reporting earnings this week.
Potential Economic and Political Market Moving Events
The main economic reports this week are PMI on Wednesday, durable goods on Thursday and PCE on Friday.
Monday:
10:00 Leading economic indicators are expected to rise slightly to -0.3% from -0.5%