The market slipped further on Thursday as worries continued to lead investors into selling, but this has left the market in an extremely oversold condition.
S&P Index Close
The S&P index closed down 9.28 points to 2088.66.
Dow Jones Index Close
The Dow Jones closed down 28.83 points to 17,930.81 for a second day below 18,000.
NASDAQ Index Close
The NASDAQ lost 47.16 points for the largest loss among the indexes tanks to Facebook’s drop. It closed at 5,058.41.
Stock Market Outlook: SPX Chart Comments At End Of Day:
SPX to Nov 3 2016
The S&P closed below the 200 day moving average again and below 2090 but the selling pressure was not as severe as Tuesday or Wednesday. The next support level is 2075 but a rebound rally should be in the works which would quickly bounce the index back above 2100 and then probably to 2125 which was support before the sell-off occurred. A move like that would recover the past 3 days of selling and would be a positive for the market.
Al the indexes are now turning lower aside from the 200 day which is just starting to turn lower. The 20 day is ready to cross below the 100 day moving average which would be quite bearish. You can see the 50 and 20 day moving averages are falling steadily and sharply now. The S&P is trading outside the Lower Bollinger Band which is also bearish and a sign of overselling.
Stock Market Outlook: Support and Resistance Levels:
These are the present support and resistance levels to be aware of.
2180 is resistance.
2150 is resistance.
2125 is resistance.
2100 is light support.
2090 is very light support.
2075 is also light support
Below that is 2050 which is light support.
2025 is better support than 2050.
2000 is primary support.
Weak support is at 1970 while stronger support is at 1956 and technically it is more important than 1970 for the market. 1940 is light support as is 1920. 1900 is more symbolic than any support.
Stock Market Outlook – Technical Indicators At The Close
There is no need for technical analysis this evening. The market is now extremely oversold but there were no technical indicators showing a bounce was imminent aside from being so oversold.
Stock Market Outlook for Tomorrow – Nov 4 2016
Aside from the technical indicators that show the market is due to bounce, yesterday’s selling slowed when two polls were released showing Mrs Clinton still had the lead in the elections which are next week. With just days away, investors should be in the mood to snap up some stocks, many of which are at some decent bargain prices.
Tomorrow the jobs numbers are released for October. They will have a strong impact on the market but unless they show something unexpected such as a sudden jump in unemployment, the biggest impact on the markets on Friday should be the extreme 8 day sell-off which has left the market deeply oversold, along with polls showing Mrs Clinton is still in the lead. It isn’t that investors believe Mrs Clinton will be the best choice, they just don’t know what to expect with a Mr. Trump win and that has investors on edge. Investors hate uncertainty and with Mrs Clinton they see the status quo and a career politician. With Mr. Trump they see an unknown entity and that is the biggest reason the market has sold off. A rally when it happens will be swift.
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