Prior Trading Day Summary:
On Friday Jan 24, markets moved lower as the indexes remain overbought heading into the important week ahead of earnings from some of the biggest corporations.
The SPX closed down 17 points for a modest loss and a close at 6101. 58% of all volume was still advancing on Friday and 54% of all stocks were rising.
The NASDAQ lost 99 points and closed back below 20,000 at 19,954. 51% o volume was advancing and 50% of stocks were rising.
This week is the busiest for quarterly earnings with Apple, Meta, Microsoft, GM, Boeing, Tesla among many others reporting earnings.
Let’s review the technical indicators at the close on Fri Jan 24 2025 to see what to expect for Mon Jan 27 2025.
Stock Market Outlook: SPX Closing Chart For Fri Jan 24 2025
The index closed above all major moving averages and at the Upper Bollinger Band which is bullish.
The closing candlestick has a long shadow and closed well off the high of the day. This signals s dips are likely on Friday and even a lower close but the outlook is still bullish.
The 21 day moving average is rising and closed at 5960 which is bullish. The 21 day is moving higher and should cross back above the 50 day which will end the only down signal in the chart.
The 50 day moving average is rising and closed at 5981 which is bullish.
The 100 day moving average is rising and closed at 5845 hich is bullish.
The 200 day moving average is rising and closed at 5614 which is bullish.
The Lower Bollinger Band is falling which is bullish at present. The Upper Bollinger Band has turned back up which is bullish.
For Monday, the SPX chart is more bullish than bearish as it continues to be overbought.
SPX Stock Market Outlook review of Fri Jan 24 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Jan 17 2025. The up signal was stronger on Fri Jan 24 2025. It is at readings where a dip or even a pullback can happen. You can see that this rally
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Ultimate Oscillator: The Ultimate Oscillator is falling back slightly and remains at overbought levels..
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Slow Stochastic: The Slow Stochastic has an up signal in place that is turning to a down signal. It is overbought.
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Relative Strength Index: The RSI signal is falling and is overbought.
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Rate of Change: The rate of change signal is falling and signaling Monday will end lower.
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Stock Market Outlook: Support and Resistance Levels |
| 6125 is resistance |
| 6100 is strong resistance |
| 6090 is resistance |
| 6070 is resistance |
| 6050 is resistance |
| 6025 is resistance |
| 6015 is resistance |
| 6000 is resistance |
| 5990 is resistance |
| 5970 is resistance |
| 5950 is support |
| 5900 is support |
| 5890 is support |
| 5875 is support |
| 5850 is support |
| 5830 is support |
| 5800 is support |
| 5780 is support |
| 5725 is support |
| 5700 is support |
Stock Market Outlook for Mon Jan 27 2025
For Monday the technical indicators have slipped, indicating that the day will see dips. While trading will be choppy the day still has a chance to end higher as investors prepare for a busy week of earnings from some of the biggest corporations reporting earnings, four of them from the so-called magnificent seven.
The day is expected to be choppy with dips and a lower close is likely but the overall outlook remains bullish.
Potential Economic and Political Market Moving Events
Monday:
10:00 New home sales for December are estimated to rise to 671,000 from 664,000 prior.