Stock Market Outlook for Thu Feb 25 2021 – Choppy, Dips Likely But Higher

Stock Market Outlook Choppy Dips Likely Higher

Wednesday saw the index dip at the open but then recover and push to 3900 and then to 3925 by the close. It was an impressive day with good volume and heavy buying across most sectors.


Stock Market Outlook Chart Comments At The Close on  Wed Feb 24 2021 

The S&P closed at 3925. The closing candlestick is bullish for Thursday. The index closed well above the 21 day moving average on Wednesday.

The Upper Bollinger Band is back climbing. The Lower Bollinger Band is moving sideways. These are bullish signals for the Bollinger Bands.

The 21 day moving average is dipping slightly. The 200, 100 and 50 day moving averages are still climbing.

Stock Market Outlook review of Wed Feb 24 2021

Stock Market Outlook: Technical Indicators Review:

Momentum: Momentum is rising and back positive.

  • Settings: For momentum I use a 10 period when studying market direction.

MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Mon Feb 23 2021. On Wednesday the down signal lost a lot of strength.

  • Settings: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. 

Ultimate Oscillator: The Ultimate Oscillator is rising.

  • Settings: The Ultimate Oscillator settings are: Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months.

Slow Stochastic: The Slow Stochastic has a down signal in place but is nearing an up signal.

Settings: For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic tries to predict the market direction further out than just one day.

Relative Strength Index: The RSI signal is rising off an oversold reading.

  • Settings: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor.  It is often the first indicator to show an overbought or oversold signal.

Rate of Change: The rate of change signal is rising.

  • 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.





Support and Resistance Levels To Be Aware Of:

4000 is resistance

3900 is resistance

3850 is support.

3800 is support.

3750 is support

3700 is light support

3600 is strong support

3550 is support

3500 is strong support

3450 is support. The 200 day moving average is just above this valuation. A drop this low would represent an 11% correction.


 Stock Market Outlook for Tomorrow – Thu Feb 25 2021 

For Thursday the S&P is setup to start the day with a dip or certainly in the morning we will see a dip. The day should see more choppy trading but a higher close is being signaled by the technical indicators.


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