Stock Market Outlook for Nov 27 2019 – Sideways With Bias Up Ahead Of Thanksgiving

Stock Market Outlook - sideways slight bias up

Another move higher for the indexes and new all-time highs again. The close saw both the S&P and NASDAQ slightly below their all-time highs.


Stock Market Outlook Chart Comments At The Close on Tue Nov 26 2019 

The SPX chart is still bullish, although the closing candlestick on Tuesday was once again bearish for the next trading day.

All the remaining signals are still bullish.

3030 is still light support. All the major moving averages are still 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 and is nearing the 3030 level.

The Lower Bollinger Band has moved above the 50 day moving average which is bullish.

The 100 and 200 day moving averages are still rising.

The two buy signals from September are still in place.

Stock Market Outlook review of Tue Nov 26 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 a down signal on Thursday Nov 21 2019. On Wednesday MACD issued a new unconfirmed up signal at the close of trading.

  • 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.

  • 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 nearing 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 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 falling indicating lower prices may lie ahead.

  • 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 is 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 – Wed Nov 27 2019 

The technical indicators are showing some weakness but overall they are still bullish.

MACD issued a new unconfirmed up signal and the Slow Stochastic still has an up signal in place for a second day.

With Thanksgiving Holiday just a day away, volumes will be lower and we should see the index trade primarily sideways but it should keep a slight bias to the upside. Friday is a half day and will probably end slightly lower to finish out November.


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