Prior Trading Day Summary
On Wed Jan 7 2026 the S&P and Dow Jones made new highs but couldn’t hold them as investors fretted about the ADP employment numbers that came in at 41,000 which was below estimates of 48,000. Investors took profits including in many of the stocks that had soared higher on Tuesday.
Losses were small with the S&P down 24 points to 6920.93. Overall though the S&P fell from an intraday high of 6965. Volume was lower at 5.2 billion shares traded with 62% of all stocks moving lower by the close.
The NASDAQ rose 37 points to close at23,584. Volume fell to 8.5 billion shares traded with 53% of stocks falling by the close.
Let’s review the closing technical indicators from Jan 7 2026 to see what to expect on Thu Jan 8 2026.
Stock Market Outlook: SPX Closing Chart For Wed Jan 7 2026
The index closed below the Upper Bollinger Band and above all major moving averages. This is bullish.
The closing candlestick is bearish but with a long shadow that often sees stocks attempt a bounce.
The 21 day moving average is rising and closed at 6865. This is bullish.
The 50 day moving average is rising and closed at 6815. This is bullish.
The 100 day moving average is rising and closed at 6676 which is bullish.
The 200 day moving average is rising and closed at 6431 which is bullish.
The Lower Bollinger Band is falling which is bullish. The Upper Bollinger Band is rising which is bullish. The Bollinger Bands Squeeze is ending and the outlook is for the index to move still higher.
The SPX chart is more bullish than bearish with some stocks still overbought.
SPX Stock Market Outlook review of Wed Jan 7 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive. This is bearish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Dec 23 2025. On Wed Jan 7 2026 the up signal was slightly stronger.
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Ultimate Oscillator: The Ultimate Oscillator is falling.
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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 falling.
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| Rate of Change: The rate of change is falling and signaling a lower close for today. 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 |
| 7000 is resistance |
| 6950 is resistance |
| 6925 is resistance |
| 6900 is resistance |
| 6875 is resistance |
| 6850 is resistance |
| 6800 is resistance |
| 6775 is resistance |
| 6750 is resistance |
| 6725 is support |
| 6700 is resistance |
| 6675 is support |
| 6650 is support |
| 6625 is support |
| 6600 is support |
| 6590 is support |
| 6570 is support |
| 6550 is support |
| 6500 is support |
Stock Market Outlook for Thu Jan 8 2026
The rally ran into selling on Wednesday despite making another new intraday high. Investors are trying to figure of report.
Overall momentum while weaker is still bullish and the technical indicators are primarily bullish.
On Thursday expect a choppy day with weakness as investors position themselves for the December non-farm payroll report due out on Friday at 8:30. This will be the first “accurate” report since the government shutdown. Expect dips in the morning and an attempt to move higher in the afternoon.
Potential Economic and Political Market Moving Events
Monday:
10:00 ISM Manufacturing index for Dec came in lower than estimated at 47.9%. Anything below 50% is considered a signal of contraction.
Through the day we get auto sales
Tuesday:
9:45 S&P final services PMI for Dec was higher than estimated at 52.5, down only slightly from the 52.9 prior.
Wednesday:
8:15 ADP employment for December came in at 41,000 which was below estimates of 48,000
10:00 ISM services index for December beat estimates, rising to 54.4% from the last reading of 52.6%
10:00 Job openings fro Nov came in lower than estimated at 7.1 million
10:00 Factory orders for Oct were below estimates at -1.3%
Thursday:
8:30 Weekly Initial Unemployment Insurance Claims are estimates at 210,000 up from 199,000 prior
8:30 Trade deficit for Oct is estimated at -58.4 billion
8:30 US productivity is estimated to rise to 4.9% from 3.3% prior
3:00 Consumer credit for Nov is estimates unchanged at $9.2 billion