Stock Market Outlook for Thu Dec 27 2018 – Santa Claus Rally Underway

Another short write-up for the Stock Market Outlook for Thu Dec 27 2018. The biggest one day rally for the S&P and NASDAQ Indexes since March 2009, occurred Wed Dec 26 2018 with the S&P up 116.60 to $2467.70 and the NASDAQ up 361.44 to $6,554.35.

As I am spending the evening working on trades for Thursday, tonight’s outlook is short.

The bounce on Wednesday should see Thursday morning enter a drop, either near the open or by mid-morning. The dip could take the S&P back to 2425 or 2430 from which the rally should then begin another move higher.

The Santa Claus Rally should be underway and while Wednesday’s giant move up won’t be repeated, the market in general will move higher. While this is not an end to the correction, the rally should be tradable, allowing investors to adjust positions as well as take profits and setup additional trades.

Thursday will end higher while Friday could see some selling to end the year. Early next week should see the index push still higher. I am expecting the S&P should be able to make it to 2550 before heavier selling may stall the rally. Upside target for the rally could be 2620 to 2650.

Support Resistance Levels To Be Aware Of:

2700 is resistance

2675 is light resistance

2650 is light resistance

2620 is light resistance

2600 is strong resistance.

2550 is resistance.

2480 is resistance.

2450 is resistance.

2525 is resistance.

2400 was support and may still be.

2380 was support and may still be. A rally could reach the level.

2350 to 2300 is the best support and marks a full correction.

A break and a couple of closes below 2300 would signal an end to the bull market from 2009.

Stock Market Outlook Archives

Stock Market Outlook for Wed Apr 24 2024 – Some Weakness But Higher Close

Prior Trading Day Summary: Tuesday saw the rally continue for a second day with rising up volume, wider market breadth and a higher gain. All of this is bullish. Much ....... Read More

Morning Investing Strategy Notes for Tue Apr 23 2024

For FullyInformed Members the morning Investing Strategy Notes for Tue Apr 23 2024 discuss the bounce on Monday. There are trade ideas on a wide number of stocks including Nucor ....... Read More

Stock Market Outlook for Tue Apr 23 2024 – Bounce But Lower

Prior Trading Day Summary: Monday saw the long awaited bounce from the recent selling and market breadth was bullish. The SPX rose 43 points recovering all of Friday's loss to ....... Read More

Morning Investing Strategy Notes for Mon Apr 22 2024

For FullyInformed Members the morning Investing Strategy Notes for Mon Apr 22 2024 discuss the outlook for the start of the fourth week of April. There are also comments on ....... Read More

Stock Market Outlook for Mon Apr 22 2024 – No Change – Deeply Oversold Bounce Possible

Prior Trading Day Summary: Friday saw stocks open flat and try to climb within the first 15 minutes. When that failed the selling continued. The early afternoon saw a rally ....... Read More

Morning Investing Strategy Notes for Fri Apr 19 2024

For FullyInformed Members the morning Investing Strategy Notes for Fri Apr 19 2024 discuss the outlook for for a potential bounce that ends the day with the indexes positive. There ....... Read More

Stock Market Outlook for Fri Apr 19 2024 – Deeply Oversold – Bounce Likely – Higher Close

Prior Trading Day Summary: Thursday saw another morning bounce attempt but no follow through. However the SPX did not break below 5000 and managed to close at 5011 although minutes ....... Read More

Morning Investing Strategy Notes for Thu Apr 18 2024

For FullyInformed Members the morning Investing Strategy Notes for Thu Apr 18 2024 discuss the outlook for Thursday and a possible bounce or a move lower. There are trade ideas ....... Read More

Stock Market Outlook for Thu Apr 18 2024 – Deeply Oversold – Bounce Attempt Expected

Prior Trading Day Summary: Wednesday saw a bounce attempt at the open which managed to reach 5078 before selling once again pushed stocks lower. By 12:45 stocks looks almost ready ....... Read More

Morning Investing Strategy Notes for Wed Apr 17 2024

For FullyInformed Members the morning Investing Strategy Notes for Wed Apr 17 2024 discuss the outlook for a potential bounce on Wednesday. There are trade ideas outlined in Las Vegas ....... Read More

Stock Market Outlook for Wed Apr 17 2024 – Another Bounce Attempt

Prior Trading Day Summary: Tuesday found stocks stuck in a fairly tight trading range as investors remain worried about a potential Israeli retaliatory strike against Iran and what might be ....... Read More

Morning Investing Strategy Notes for Tue Apr 16 2024

For FullyInformed Members the morning Investing Strategy Notes for Tue Apr 16 2024 discuss the outlook for stocks for Tuesday and the chance of a bounce. There are trade ideas ....... Read More

Stock Market Outlook for Tue Apr 16 2024 – Deeply Oversold

Prior Trading Day Summary: Monday started the day as expected with a massive rally at the open and a push higher especially when retail sales came in stronger than expected. ....... Read More

Morning Investing Strategy Notes for Mon Apr 15 2024

For FullyInformed Members the morning Investing Strategy Notes for Mon Apr 15 2024 discuss the outlook for stocks for Monday as well as the third week as a whole. There ....... Read More

Stock Market Outlook for Mon Apr 15 2024 – Expect A Bounce

Prior Trading Day Summary: On Friday investors got better than expected bank earnings but sold bank stocks lower. The selling extended into other sectors until by the close the indexes ....... Read More