The S&P on Friday pushed to new all-time highs once again. Volume slipped back a bit and buying was not as strong as before but the market did close the day at a new closing high. All three indexes made new all-time highs on Friday with the S&P ending with a very small gain while the NASDAQ enjoyed the best gain, up .22% for the day. All 3 indexes closed higher for the second week of October.
S&P 500 Index Close
The S&P index ended up 2.24 to 2553.17
Dow Jones Index Close
The Dow Jones ended up 30.71 to 22,871.72
NASDAQ Index Close
The NASDAQ closed up 14.29 to 6,605.80.
Stock Market Outlook
Stock Market Outlook review of Oct 13 2017
Chart Comments At The Close:
On Friday the S&P moved back up and is just below the Upper Bollinger Band which is bullish for Monday. The closing candlestick on Friday was bullish.
All the major moving averages and the 21 day moving average are moving higher which is bullish. The Upper Bollinger Band is also moving higher, again bullish for the market.
The Lower Bollinger Band is now moving lower, which is also bullish for the market.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive but continuing to slip.
MACD Histogram: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) issued a buy signal on Aug 31. The buy signal is still eroding.
Ultimate Oscillator: 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. The Ultimate Oscillator is positive, no longer overbought and falling.
Slow Stochastic: 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. The Slow Stochastic is extremely overbought. It has an up signal in place for Monday.
Relative Strength Index: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It often is the first indicator to show an overbought or oversold signal. The RSI signal is showing the market is still overbought and it is trending sideways indicating not a lot of change in the market is expected to start off the week.
Rate of Change: 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. The rate of change signal is positive and also trending sideways which indicates prices are not expected to change much on Monday.
Support Levels To Be Aware Of:
The S&P has light support at 2480. It has light support at 2450 and good support at 2425. There is also light support at 2400, 2380, 2350 and 2300.
Stock Market Outlook for Tomorrow – Monday Oct 16 2017
There is definite weakness in the S&P but the technical indicators are also showing that the overbought condition is being worked out of the markets. This could be setting the S&P up for another pop higher once the overbought condition is removed. Perhaps as early as mid-week.
As well we unofficially get underway with the next quarterly results this week. Monday we start with Netflix. Earnings should boost the markets as investors anticipate better than expected earnings.
Monday then should end positive although there is weakness continuing to build in the market place. Tuesday looks weak when reviewed from Monday’s outlook.
Earnings hopes should be enough to keep the market up for much of the week including Monday.
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