On Monday, all 3 indexes moved higher setting new records for yet another day. The first trading day of October historically has been poor. This was not the case on Monday with stocks soaring higher.
The Dow Jones in particular had an excellent day, moving higher by 0.68%.
S&P 500 Index Close
The S&P index ended up 9.76 to 2529.12
Dow Jones Index Close
The Dow Jones ended up 152.51 to 22,557.60
NASDAQ Index Close
The NASDAQ closed up 20.76 to 6516.72
Stock Market Outlook
Stock Market Outlook review of Oct 2 2017
Chart Comments At The Close:
The S&P on Monday closed at the Upper Bollinger Band. It left behind a bullish candlestick for Tuesday.
The 21 day is continuing to climb. The 50 day is moving sideways which could prove problematic for the first week of October and needs to be watched to start the week.
The 100 and 200 day moving averages are continuing to rise which is bullish.
The Lower Bollinger Band is moving rapidly higher so we could see a Bollinger Bands Squeeze shortly although on Monday the Lower Bollinger Band began to turn sideways which might end the chance for a Bollinger Bands Squeeze. We will know more shortly.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive and rising.
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 was stronger on Monday.
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 and moving back toward being overbought.
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 has an up signal in place and is extremely overbought.
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 overbought.
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 not climbing but starting to dip which could be an early signal that the market will take a break shortly.
Support Levels To Be Aware Of:
The S&P is trying to build 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 – Tue Oct 3 2017
For Tuesday, the S&P looks set to try for another day of gains. The technical indicators are very overbought and that could spell some difficult for the markets.
Nonetheless, even if there is some weakness in the morning trading, the outlook remains up for the index.
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