Stock Market Outlook for Thu Aug 17 2023 – More Weakness But Bounce Likely and Possible Higher Close

Day’s Summary

On Wednesday investors continued Tuesday’s sell-off and pushed indexes lower.

The S&P continued to fall below the 50 day moving average and ended down 33 points to 4403.33.

The NASDAQ saw the heaviest volume in weeks and new lows reached 290. The loss was 156 points to close at 13,474.

Let’s review the SPX index from Wednesday to see what to expect for Thursday.

Stock Market Outlook: SPX Closing Chart For Wed Aug 16 2023

The index closed below the 50 day moving average for the second time this week. This is bearish and the closing candlestick is also bearish for Thursday.

The closing candlestick on Wednesday is bearish but also signaling stocks are still extremely oversold.

The 21 day moving average is turned down which is bearish. The 50, 100 and 200 day moving averages are continuing to climb which is bullish.

The Lower Bollinger Band fell further and is bearish. The Upper Bollinger Band is turning higher which is often a signal of an impending bounce. A new Bollinger Bands Squeeze is still ongoing. 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 16 2023

Stock Market Outlook: Technical Indicators Review

Stock Market Outlook for Thu Aug 17 2023 

For Thursday the technical signals are advising that a bounce could happen at any time. The technical indicators are still signaling stocks are oversold and should bounce.

With stocks set to bounce on Thursday, we should see a higher day for the towels.

There is a good chance stocks may bounce back and close up on Thursday.

Potential Economic and Political Market Moving Events

Thursday:

8:30 Weekly Initial Unemployment Insurance Claims are expected to come in slightly lower at 240,000.

8:30 Philadelphia Fed is releasing the latest manufacturing survey,