Prior Trading Day Summary:
On Wednesday investors were back buying stocks again and volumes improved, particularly in the S&P. The SPX made a new all-time intraday and closing high.
The S&P gained 40 points and closed at 4995 and intraday it reached 4999.89. Volume rose to 4.8 billion shares traded which is bullish.
The NASDAQ gained 147 points and closed at 15756. Wednesday was a second straight day of 4.8 billion shares traded.
Let’s review Wednesday’s closing technical indicators to see if we can expect the SPX to close above 5000 for the first time on Thursday.
Stock Market Outlook: SPX Closing Chart For Wed Feb 7 2024
The index closedat the Upper Bollinger Band which is bullish.
The closing candlestick is also bullish for Thursday.
The 21 day moving average is moving higher which is bullish. It is above the 4875 valuation.
The 50 day moving average is rising and above 4700 which is bullish.
The 100 and 200 day moving averages are climbing which is bullish. The 200 day is above 4450 on the SPX which is bullish.
The Lower Bollinger Band is rising as is the Upper Bollinger Band. At present this is bullish.
The S&P chart is bullish for Thursday.
Stock Market Outlook review of Wed Feb 7 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Jan 23 2024. On Wed Feb 7 2024 the up signal gained strength.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive. It is overbought.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is overbought.
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Relative Strength Index: The RSI signal is rising and positive. It is overbought.
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Rate of Change: The rate of change signal is falling signaling Thursday may see a slightly lower close or certainly a close below 5000.
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Stock Market Outlook: Support and Resistance Levels |
| 5025 is resistance |
| 5010 is resistance |
| 5000 is resistance |
| 4990 is resistance |
| 4975 is resistance |
| 4950 is resistance |
| 4925 is resistance |
| 4915 is resistance |
| 4900 is resistance |
| 4875 is resistance |
| 4850 is resistance |
| 4825 is resistance |
| 4815 is resistance |
| 4800 is support |
| 4780 is support |
| 4750 is support |
| 4720 is support |
| 4700 is support |
| 4675 is support |
| 4650 is support |
| 4625 is support |
| 4600 is support |
| 4590 is support |
| 4575 is light support |
| 4565 is light support |
| 4550 is support |
| 4500 is support |
Stock Market Outlook for Thu Feb 8 2024
The technical indicators are back positive and many are overbought. The Rate Of Change is the only indicator signaling some trouble ahead but much of that signal may be caused by the SPX moving back into overbought.
On Thursday expect some dips with the SPX just below 5000. Spikes above 5000 are also probable.
The close could be just below or just above 5000 on Thursday.
On Thursday, dips are opportunities to setup trades.
Potential Economic and Political Market Moving Events
There are not as many events this week that will impact stocks. That should help the bulls.
Monday:
9:45 Final service PMI is expected to be unchanged at 52.9 but came in slightly lower at 52.5
10:00 ISM services is expected at 52.0% but rose slightly to 52.5%
Tuesday:
4 Fed Presidents speak during the day but there are no economic reports to move the markets. This could support the bulls.
Wednesday:
8:30 Trade deficit is estimated at $62.1 billion but came in at a surprising -$62.2 billion.
3:00 Consumer credit is expected to decline to $15 billion but declined to $1.5 billion.
Thursday:
8:30 Weekly Initial Unemployment Insurance Claims are expected to be 220,000
10:00 Wholesale inventories is expected at 0.3%