Friday saw better than expected October jobs numbers which sent the indexes soaring higher. Within the first half hour the S&P had pushed to a new intraday high of 4718, but that marked the highest point of the day. The remainder of the day saw investors taking some profits but still leaving the S&P to close out at a new closing high of 4697.
The NASDAQ rose higher as well reaching an intraday high of 16053 before drifting lower to close at 15,971.
It was a strong day with good volume but stocks are a bit ahead of themselves and that has left overbought markets for the start of the second week of November.
Let’s review the close on Friday to see what to expect for Monday Nov 8.
Stock Market Outlook Chart Comments At The Close on Fri Nov 5 2021
The index closed below the Upper Bollinger Band but still higher. The rush higher in the morning but then a dip back to close lower, left behind a bearish candlestick to start the week. The candlestick is advising that the market is overbought.
The Upper Bollinger Band is still rising which is bullish. The Lower Bollinger Band is back turning higher. This is bearish.
The 50, 100 and 200 day moving averages are all climbing. This is bullish.
For Monday the chart is dominantly bullish except for the Lower Bollinger Band and the closing candlestick.
Stock Market Outlook review of Fri Nov 5 2021
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is rising and positive.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Wed Oct 13 2021 . On Friday the up signal gained strength for the third straight day.
- 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 is falling and 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 has a down signal in place and still very overbought..
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 rising and very overbought.
- 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 falling.
- 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:
4700 is resistance
4655 is resistance
4600 is resistance
4550 is light support
4525 is light support
4500 is support
4490 is support
4475 is support
4450 is support
4400 is support
4370 is light support
4350 is light support
4300 is light support
Stock Market Outlook for Tomorrow – Mon Nov 8 2021
For Monday the technical indicators are mixed to start the week but most are indicating that the market is overbought and due for a rest.
We should see some dips during the day on Monday perhaps as low as 4670 but with buyers watching for dips, there is still a very bullish outlook for the week and a chance for another positive close.
The problem is the index is ahead of itself having jumped quickly to 4600, then 4650 and 4670 and then 7000. It’s been a fast move but usually the market will want to retest some of the jumps for a bit of support.
For Monday then the outlook is still bullish with a chance for yet another positive close, but at the same time the signals are advising a rest is in the works which could be as soon as Monday.
Stock Market Outlook Archives
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Morning Investing Strategy Notes for Tue May 5 2026
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Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
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Stock Market Outlook For Thu Apr 30 2026 – Dips Likely Possible Lower Close
Morning Investing Strategy Notes for Wed Apr 29 2026
Stock Market Outlook For Wed Apr 29 2026 – Choppy But Higher Ahead Of More Earnings
Morning Investing Strategy Notes for Tue Apr 28 2026
