Day’s Summary
On Friday stocks rebounded from the prior day’s sell-off and closed up 44 points, wiping out Thursday’s loss and stalling the potential MACD down signal. For Monday, the down signal is not confirmed.
The NASDAQ also rose rising 266 points, the best single day since May 5. The index closed at 14316.
Let’s review the technical indicators from the close on Friday to see if the MACD sell signal might get confirmed.
Stock Market Outlook: SPX Closing Chart For Fri Jul 28 2023
The index closed just below the Upper Bollinger Band for the 7th straight day. It is continuing to stay above all moving averages which is still bullish.
The closing candlestick on Friday is bullish but it also is common for the day following to see sideways action. That would mean Monday could see the index not make much of a move either up or down.
The 21, 50, 100 and 200 day moving averages are continuing to climb which is bullish.
The Lower Bollinger Band is climbing and crossed above the 50 day moving average. This is bearish to start Monday but if it rises along with the Upper Bollinger Band it will be bullish.
Meanwhile the Upper Bollinger Band is back climbing which is bullish.
Stock Market Outlook review of Fri Jul 28 2023
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 Thursday Jul 13. On Thursday Jul 27 a new unconfirmed down signal was generated. It was not confirmed on Friday.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive.
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Slow Stochastic: The Slow Stochastic has a down signal in place. It is overbought.
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Relative Strength Index: The RSI signal is rising sharply.
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Rate of Change: The rate of change signal is rising.
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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 support |
| 4435 is support |
| 4420 is support |
| 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 Jul 31 2023
For Monday the S&P technical indicators are advising a bit of caution but nothing severe. The outlook remains higher for the S&P even if only a few points by the close. The down signal from last Thursday is still unconfirmed. I am not expecting it will be confirmed on Monday.
Potential Economic and Political Market Moving Events
Monday:
8:30 Chicago business barometer
2:00 Federal loan survey