Day’s Summary
On Wednesday stocks were back under selling pressure. The SPX lost 31 points to end the day at 4467, albeit on lower volume.
The NASDAQ lost 162 points to end the day at 13,722.
Both indexes have a growing list of stocks that are oversold with many now deeply oversold.
Let’s review the technical indicators from the close on Wednesday to see what to expect for Thursday’s trading.
Stock Market Outlook: SPX Closing Chart For Wed Aug 9 2023
The index closed below the 21 day moving average for a fifth day. This is bearish.
The closing candlestick on Wednesday is bearish and signaling stocks are deeply oversold.
The 21 day moving average is turning sideways. The 50, 100 and 200 day moving averages are continuing to climb which is bullish.
The Lower Bollinger Band rose further above the 50 day moving average which is bearish. The closing candlestick closed at the Lower Bollinger Band which often results in a bounce. The Upper Bollinger Band is turning lower which is also bearish. A new Bollinger Bands Squeeze is underway. At present the squeeze looks like stocks will move lower but often stocks actually dip and then recover to move higher.
Stock Market Outlook review of Wed Aug 9 2023
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and negative. It is signaling deeply oversold.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thursday Jul 27. On Wed Aug 9 2023 the down signal increased in strength. It is at a level where often we will see a strong bounce.
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Ultimate Oscillator: The Ultimate Oscillator is rising, negative and trying to bounce from oversold.
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Slow Stochastic: The Slow Stochastic has an up signal in place. It is oversold but also signaling there is a chance for a bounce attempt coming.
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Relative Strength Index: The RSI signal is falling and negative. It is back oversold.
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Rate of Change: The rate of change signal is falling and near levels where often the index is deeply oversold.
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Stock Market Outlook: Support and Resistance Levels |
| 4600 is resistance |
| 4575 is resistance |
| 4550 is resistance |
| 4525 is resistance |
| 4500 is support |
| 4485 is support |
| 4470 is support |
| 4450 is support |
| 4435 is support |
| 4420 is support |
| 4400 is support |
| 4390 is support |
| 4370 is support |
| 4350 is support |
| 4340 is support |
| 4325 is support |
| 4310 is support |
| 4300 is support |
| 4290 is support |
| 4275 is support |
| 4250 is support |
| 4240 is support |
| 4225 is support |
| 4210 is support |
| 4200 is good support |
Stock Market Outlook for Thu Aug 10 2023
Thursday is all about the CPI numbers but once they are out and stocks have reacted, the technical indicators will be influencing the market direction. While bearish, there are still signals that stocks are getting set to bounce.
For Thursday we will know before the open the CPI results. These will hold a lot of sway on which way the market moves today.
Potential Economic and Political Market Moving Events
The big event this week is today with the latest CPI numbers
Thursday:
8:30 Consumer Price Index
8:30 Core CPI and year-over-year
8:30 CPI year-over-year
8:30 Weekly Initial Unemployment Insurance Claims