Prior Trading Day Summary
On Wednesday investors shook off tariff talk and focused on earnings. Of companies who have reported earnings this quarter, 81% have beaten estimated. That’s a huge boost for the market.
The SPX rose 45 points, wiping out yesterday’s 30 point decline. For the week the SPX is up 107 points. The SPX ended the day at 6345.
The NASDAQ rose 252 points also wiping out yesterday’s dip. The NASDAQ closed at 21169. For the week the NASDAQ is up 519 points.
Lets review the closing technical indicators from Wed Aug 6 2025 to see what they predict for Thu Aug 7 2025.
Stock Market Outlook: SPX Closing Chart For Wed Aug 6 2025
The index closedback above the 21 day moving average but below the Upper Bollinger Band. This is bullish.
The closing candlestick is bullish for Thursday.
The 21 day moving average is rising and closed at 6313 which is bullish.
The 50 day moving average is rising and closed at 6159 which is bullish.
The 100 day moving average is rising and closed at 6021 which is bullish.
The 200 day moving average is rising and closed at 5863 which is bullish.
The Lower Bollinger Band is turning higher which is bullish. The Upper Bollinger Band is moving sideways which is bearish. The Bollinger Bands Squeeze is still in play but stocks look set to pullback out of the latest squeeze.
The SPX chart is more bullish than bearish for Thursday.
SPX Stock Market Outlook review of Wed Aug 6 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and negative.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Tue Jul 15. On Wed Aug 6 2025 the down signal lost a bit of strength.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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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 rising
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| Rate of Change: The rate of change signal is rising signaling a higher close is expected for Thursday. 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. |
Stock Market Outlook: Support and Resistance Levels |
| 6400 is resistance |
| 6390 is resistance |
| 6365 is resistance |
| 6350 is resistance |
| 6325 is resistance |
| 6300 is resistance |
| 6250 is resistance |
| 6225 is resistance |
| 6200 is resistance |
| 6175 is resistance |
| 6150 is resistance |
| 6125 is resistance |
| 6100 is support |
| 6075 is support |
| 6050 is support |
| 6025 is support |
| 6000 is support |
| 5990 is support |
| 5975 is support |
| 5950 is support |
| 5925 is support |
| 5900 is support |
Stock Market Outlook for Thu Aug 7 2025
For Thu Aug 7 2025 the SPX technical indicators are more bullish than bearish. With the majority of technical indicators pointing higher for stocks, the outlook for Thursday is for stocks to trade in a choppy session but end the day higher.
Potential Economic and Political Market Moving Events
Monday:
10:00 Factory orders came in at -4.8% slightly better than estimates.
Tuesday:
8:30 Trade deficit came in at -$60.2 billion, a larger decrease than estimated
9:45 S&P final services PMI was above estimates at 55.7
10:00 ISM services were lower than estimated at 50.1%
Wednesday:
No economic reports
Thursday:
8:30 Weekly Initial Unemployment Insurance Claims are expected to rise to 221,000
8:30 Productivity is estimated to rise to 1.9%
8:30 Unit labor costs are estimated at 1.3%, down from 6.6% prior