Stock Market Outlook for Thu Jun 7 2018 – Still Higher

Stock Market Summary for Wed Jun 6 2018 

I had expected some weakness on Wednesday and then a higher afternoon and close. The morning did see a bit of weakness but by 11:00 AM the S&P was already climbing. By the close the S&P was just 8 points away from 2780. All the indexes closed at their highs for the day. The NASDAQ set another new closing high.

Closing Statistics from Wed Jun 6 2018 

The S&P climbed 23.55 to 2772.35

The NASDAQ Composite rose 51.38 to close at 7689.24

The Dow Jones Industrial Average climbed the most of the three indexes, up 346.41 to 25,146.39 for a 1.4% gain.

Stock Market Outlook Chart Comments At The Close on Wed Jun 6 2018 

The S&P closed above the Upper Bollinger Band. This is a sign of strength and of the market entering being overbought.

The closing candlestick is bullish but also shows the SPX as overbought.

The 50 day moving average is still trending below the 100 day but is rising. The 200 day is rising.

The Lower Bollinger Band has moved above the 50 day and is preparing to climb above the 100 day moving average. This will be another bullish signal.

The Bollinger Bands are starting to form a Bollinger Bands Squeeze which could possibly send stocks higher into June.

Overall the index chart is strongly bullish to push higher and probably retake 2795 this week. 2800 could be reached early next week.

Stock Market Outlook review of Wed Jun 6 2018

Stock Market Outlook: Technical Indicators Review:

Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive and rising.

MACD Histogram: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9.MACD (Moving Averages Convergence / Divergence) issued an up signal on May 7. The up signal was stronger on Wednesday.

Ultimate Oscillator: 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. The Ultimate Oscillator signal is positive and rising.

Slow Stochastic: 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. The Slow Stochastic has a strong up signal in place for Thursday and shows the S&P as overbought.

Relative Strength Index: 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.  The RSI signal is rising.

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

Support Levels To Be Aware Of:

2745 to 2750 was light support

2725 is light support.

2700 is support.

2675 is light support.

2650 is light support

2620 is light support

2600 is strong support.

There is good support at the 2550 level from where the market bounced back from the recent correction low on Feb 9.

The S&P has light support at 2480. It also has light support at 2450 and good support at 2425. Below that there is some support at 2400, 2380, 2350. 2300 has the most support at present but would represent a full correction as a drop to this level would be 20% and just 5% away from a potential bear market signal.

 Stock Market Outlook for Tomorrow – Thu Jun 7 2018 

There are no negative technical indicators or signals again at the close on Wednesday. The candlestick shows the S&P is overbought or entering being overbought so we should expect some weakness which we may see in the early morning on Thursday.

Overall the S&P will be higher again on Thursday.

Stock Market Outlook Archives

Stock Market Outlook for Fri Apr 26 2024 – Higher and Positive Close

Prior Trading Day Summary: Thursday's GDP number came in much lower than expected at 1.6%. This stunned analysts and investors and the market plunged at the start of the day. ....... Read More

Morning Investing Strategy Notes for Thu Apr 25 2024

For FullyInformed Members the morning Investing Strategy Notes for Thu Apr 25 2024 discuss the expected sell-off and weakness after the recent bounce in equities. There are a large number ....... Read More

Stock Market Outlook for Thu Apr 25 2024 – Weakness and Lower

Prior Trading Day Summary: Wednesday saw the rally stall. With the rally stalling investors took profits which weighed on stocks. The close saw the SPX up just 1 point at ....... Read More

Morning Investing Strategy Notes for Wed Apr 24 2024

For FullyInformed Members the morning Investing Strategy Notes for Wed Apr 24 2024 discuss the second bounce on Tuesday and the outlook for the remainder of the week. There are ....... Read More

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