Prior Trading Day Summary:
Wednesday saw the rally stall. With the rally stalling investors took profits which weighed on stocks.
The close saw the SPX up just 1 point at 5071 and the NASDAQ higher by 16 points to 15,712. Volume on both indexes was mixed almost equally between shares advancing and those retreating. With META stock plunging after hours along with International Business Machines Stock (IBM) and others, Thursday looks weaker.
Let’s review the closing technical indicators from Wed Apr 24 2024 to see what investors should expect on Thu Apr 25 2024.
Stock Market Outlook: SPX Closing Chart For Wed Apr 24 2024
The index closed unchanged. This left the index above the 100 day moving average and well above the Lower Bollinger Band. The signals though are bearish.
The closing candlestick is bearish signaling a dip for Thursday.
The 21 day moving average is falling sharply and ready to fall below the 50 day for a major down signal.
The 50 day moving average is starting to move higher again. It is at 5120 which is up from yesterday. This is bullish.
The 200 day moving average is still climbing. The 200 day is at 4740 which is bullish and the 100 day is also climbing.
The Lower Bollinger Band is turning lower and ready to fall below the 100 day moving average which is bearish.
The Upper Bollinger Band is moving lower which is bearish.
The S&P chart is bearish for Thursday.
The chart is more bearish than bullish.
SPX Stock Market Outlook review of Wed Apr 24 2024 – chart courtesy TradingView
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and negative. It is signaling higher for Thursday.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Tue Apr 2. On Wed Apr 24 2024 the down signal and histogram lost strength.
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Ultimate Oscillator: The Ultimate Oscillator is rising. It is signaling a higher day for Thursday.
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Slow Stochastic: The Slow Stochastic has an up signal in place.
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Relative Strength Index: The RSI signal is trending unchanged and signaling no up move for Thursday.
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Rate of Change: The rate of change signal is trending sideways and signaling Thursday will be neutral to lower.
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Stock Market Outlook: Support and Resistance Levels |
| 5275 is resistance |
| 5250 is resistance |
| 5225 is resistance |
| 5200 is resistance |
| 5190 is resistance |
| 5175 is resistance |
| 5150 is resistance |
| 5125 is resistance |
| 5115 is resistance |
| 5100 is resistance |
| 5075 is resistance |
| 5050 is resistance |
| 5025 is support |
| 5000 is light support |
| 4990 is light support |
| 4975 is light support |
| 4950 is support |
Stock Market Outlook for Thu Apr 25 2024
The technical indicators are split by the close on Wednesday with most showing weakness and a lower day for Thursday. A few other indicators are still pointing higher for Thursday but this seems unlikely following investors selling Meta Stock (META), International Business Machines Stock (IBM) and others lower after hours on Wednesday after they released earnings.
On Thursday expect the index to see some selling pressure and end the day lower.
Potential Economic and Political Market Moving Events
The main events this week are PMI on Tuesday with a more important indicator, the PCE on Friday.
Monday:
No events
Tuesday:
9:45 S&P flash services PMI which was expected to come in slightly higher at 52 but fell to 50.9
9:45 S&P flash manufacturing PMI which was expected slightly higher at 52 but came in at 49.9
10:00 New home sales were estimated at 669,000 by stunned at 693,000
Wednesday:
8:30 Durable goods orders came in as expected at 2.6%
Thursday:
8:30 GDP is expected at 2.2%
8:30 Weekly Initial Unemployment Insurance Claims is expected at 215,000 up just slightly from last week
8:30 Advanced retail inventories is expected at 0.5%
8:30 Advanced wholesale inventories is expected at 0.5%