Prior Trading Day Summary:
On Friday investors spent most of the day taking profits until by 2:30 the index was down around 5285. Buyers then stepped back in and pushed the index to close at 5303, back above the 5300 level. Volume was 3.6 billion on the SPX but new lows were down at 25 while new highs were 187. 50% of all stocks were rising by the close with the rest either falling or unchanged.
The NASDAQ saw another heavy day of trading with 9.7 billion shares traded. Up volume was just 37% of all volume and only 45% of all stocks were rising, but the close saw only 12 points lost for the NASDAQ. It closed at 16,685.
With both the PPI and CPI reports out-of-the-way, investors are next focused on earnings from NVIDIA (NVDA) which are due out on Wednesday. However before then there are other companies reporting earnings and they will have some impact on market direction or certainly market action. AMong them is Palo Alto Networks (PANW) which reports on Monday after the close .
Let review the closing technical signals from Fri May 17 2024 to see what to expect on Mon May 20 2024.
Stock Market Outlook: SPX Closing Chart For Fri May 17 2024
The index closed above the 21 day moving average and the 50 day and just below the Upper Bollinger Band. This is bullish.
The closing candlestick is bullish but also signals Monday could be somewhat choppy.
The 21 day moving average is still below the 50 day moving average for a down signal but you can clearly see in the chart the 21 day is almost ready to move above to 50 day. This will be a major up signal.
The 50 day moving average is climbing which is bullish.
The 200 day moving average is still climbing. The 200 day is at 4807 which is bullish and the 100 day is also climbing to 5015.
The Lower Bollinger Band is below the 100 day moving average and rising which is bullish. The Upper Bollinger Band is turning higher. This is also bullish.
The S&P chart is bullish for Monday with a earning to be prepared for a somewhat choppy day.
SPX Stock Market Outlook review of Fri May 17 2024 – chart courtesy TradingView
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri May 3. The up signal gained more strength on Fri May 17 2024.
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Ultimate Oscillator: The Ultimate Oscillator is rising and overbought.
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Slow Stochastic: The Slow Stochastic has a potential change signal in place and is overbought.
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Relative Strength Index: The RSI signal is rising and positive. It is overbought.
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Rate of Change: The rate of change signal is rising strongly and signaling Monday will be higher.
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Stock Market Outlook: Support and Resistance Levels |
| 5310 is resistance |
| 5300 is resistance |
| 5275 is resistance |
| 5250 is resistance |
| 5225 is resistance |
| 5200 is resistance |
| 5190 is light support |
| 5175 is light support |
| 5150 is support |
| 5125 is support |
| 5115 is support |
| 5100 is support |
| 5075 is support |
| 5050 is support |
| 5025 is support |
| 5000 is light support |
Stock Market Outlook for Mon May 20 2024
On Monday the technical indicators are still primarily showing stocks are overbought but there remains room for more upside.
The closing candlestick on Friday warned that today would be choppy and could even see some dips. The close though will be positive. The technical indicators are also in agreement despite stocks being overbought.
Investors will be focused on earnings from Palo Alto Networks (PANW) on Monday after the close. Investors should expect a higher close as a result.
Potential Economic and Political Market Moving Events
On Wednesday we get May’s FOMC minutes. That may end up being the most significant economic event this week.
Monday:
There are no reports released today.