Stock Market Outlook for Mon Nov 18 2019 – Overbought But Higher

Friday saw all 3 indexes close at new all-time highs. It marked the first time for the Dow Jones Index to close above 28,000 and the first close for the S&P above 3100.

Stock Market Outlook Chart Comments At The Close on Fri Nov 15 2019

The SPX chart is bullish for Monday. The closing candlestick on Friday was bullish for Monday.

3030 is light support. All the major moving averages are climbing including the 50 and 21 day moving averages. The 21 day moving average is still rising above the 3030 level which is bullish. The 50 day is above the 3000 level which is also bullish.

The Lower Bollinger Band has moved above the 100 day moving average which is bullish.

The two buy signals from September are still in place.

Overall the chart remains bullish and the index as of Friday was back trying to climb higher, again.

Stock Market Outlook review of Nov 15 2019

Stock Market Outlook: Technical Indicators Review:

Momentum: Momentum is positive and moving sideways.

• Settings: For momentum I use a 10 period when studying market direction.

MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Oct 15 2019. The up signal was gaining strength again on Friday.

• Settings: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. 

Ultimate Oscillator: The Ultimate Oscillator signal is rising and moving back to signaling overbought.

• Settings: The Ultimate Oscillator settings are: Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months.

Slow Stochastic: The Slow Stochastic is extremely overbought and has an up signal in place.

• Settings: For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic tries to predict the market direction further out than just one day.

Relative Strength Index: The RSI signal is overbought and rising.

• Settings: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor.  It is often the first indicator to show an overbought or oversold signal.

Rate of Change: The rate of change signal is also rising signaling higher prices are ahead for the index.

• 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.

Support and Resistance Levels To Be Aware Of:

3100 is resistance

3030 in light support

3000 is support

2960 is light support

2950 was light support

2900 is light support

2860 is light support

2840 is support

2800 is strong support

2795 is light support

2745 to 2750 is light support

2725 is light support

2700 is light support

 Stock Market Outlook for Tomorrow – Mon Nov 18 2019 

The technical indicators are showing the market is becoming overbought again, especially after Friday’s run to new all-time highs.

There are no technical indicators pointing to a lower day for Monday but instead most are rising and signaling that despite the market being overbought higher prices lie ahead. We will most likely see dips on Monday after Friday’s record close, but dips will be opportunities to setup more trades. For the S&P, another close above 3100 will assist in paving the way for the index to rise to 3200 by the end of November.

Stock Market Outlook Archives

Stock Market Outlook for Wed Apr 24 2024 – Some Weakness But Higher Close

Prior Trading Day Summary: Tuesday saw the rally continue for a second day with rising up volume, wider market breadth and a higher gain. All of this is bullish. Much ....... Read More

Morning Investing Strategy Notes for Tue Apr 23 2024

For FullyInformed Members the morning Investing Strategy Notes for Tue Apr 23 2024 discuss the bounce on Monday. There are trade ideas on a wide number of stocks including Nucor ....... Read More

Stock Market Outlook for Tue Apr 23 2024 – Bounce But Lower

Prior Trading Day Summary: Monday saw the long awaited bounce from the recent selling and market breadth was bullish. The SPX rose 43 points recovering all of Friday's loss to ....... Read More

Morning Investing Strategy Notes for Mon Apr 22 2024

For FullyInformed Members the morning Investing Strategy Notes for Mon Apr 22 2024 discuss the outlook for the start of the fourth week of April. There are also comments on ....... Read More

Stock Market Outlook for Mon Apr 22 2024 – No Change – Deeply Oversold Bounce Possible

Prior Trading Day Summary: Friday saw stocks open flat and try to climb within the first 15 minutes. When that failed the selling continued. The early afternoon saw a rally ....... Read More

Morning Investing Strategy Notes for Fri Apr 19 2024

For FullyInformed Members the morning Investing Strategy Notes for Fri Apr 19 2024 discuss the outlook for for a potential bounce that ends the day with the indexes positive. There ....... Read More

Stock Market Outlook for Fri Apr 19 2024 – Deeply Oversold – Bounce Likely – Higher Close

Prior Trading Day Summary: Thursday saw another morning bounce attempt but no follow through. However the SPX did not break below 5000 and managed to close at 5011 although minutes ....... Read More

Morning Investing Strategy Notes for Thu Apr 18 2024

For FullyInformed Members the morning Investing Strategy Notes for Thu Apr 18 2024 discuss the outlook for Thursday and a possible bounce or a move lower. There are trade ideas ....... Read More

Stock Market Outlook for Thu Apr 18 2024 – Deeply Oversold – Bounce Attempt Expected

Prior Trading Day Summary: Wednesday saw a bounce attempt at the open which managed to reach 5078 before selling once again pushed stocks lower. By 12:45 stocks looks almost ready ....... Read More

Morning Investing Strategy Notes for Wed Apr 17 2024

For FullyInformed Members the morning Investing Strategy Notes for Wed Apr 17 2024 discuss the outlook for a potential bounce on Wednesday. There are trade ideas outlined in Las Vegas ....... Read More

Stock Market Outlook for Wed Apr 17 2024 – Another Bounce Attempt

Prior Trading Day Summary: Tuesday found stocks stuck in a fairly tight trading range as investors remain worried about a potential Israeli retaliatory strike against Iran and what might be ....... Read More

Morning Investing Strategy Notes for Tue Apr 16 2024

For FullyInformed Members the morning Investing Strategy Notes for Tue Apr 16 2024 discuss the outlook for stocks for Tuesday and the chance of a bounce. There are trade ideas ....... Read More

Stock Market Outlook for Tue Apr 16 2024 – Deeply Oversold

Prior Trading Day Summary: Monday started the day as expected with a massive rally at the open and a push higher especially when retail sales came in stronger than expected. ....... Read More

Morning Investing Strategy Notes for Mon Apr 15 2024

For FullyInformed Members the morning Investing Strategy Notes for Mon Apr 15 2024 discuss the outlook for stocks for Monday as well as the third week as a whole. There ....... Read More

Stock Market Outlook for Mon Apr 15 2024 – Expect A Bounce

Prior Trading Day Summary: On Friday investors got better than expected bank earnings but sold bank stocks lower. The selling extended into other sectors until by the close the indexes ....... Read More