The Dow Index soared again on Wednesday setting new all-time records once again.
The S&P closed up 23 points to end the day at 3898 but it did spend a lot of the day above 3900 and was at one point as high as 3917. We should see more of a push above 3910 on Thursday.
Let’s review Wednesday closing technical indicators to see what’s in store for Thursday.
Stock Market Outlook Chart Comments At The Close on Wed Mar 10 2021
The Bollinger Bands Squeeze has continued to widen on Wednesday as you can see in the chart below. This is bullish for the index. The closing candlestick on Wednesday is bullish for Thursday but often we see a day with a lot of sideways action and a slightly higher close.
The index managed to close back above the 21 day moving average which is bullish.
The 21 day moving average is still moving lower and could fall below the 50 day by the end of the week if there is more selling. That would be the first major sell signal since the up signal of Oct 21.
The 50, 100 and 200 day moving averages are climbing higher.
While the chart does show the SPX is facing some trouble, the index still has not broken below the lows of Jan 29 and Feb 1. In other words, so far this is a normal correction in an ongoing bull market.
Stock Market Outlook review of Wed Mar 10 2021
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is falling and still negative.
- 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 weakened for a fourth straight day.
- 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 an up signal for a third straight day.
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.
- 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 trending sideways indicating not a lot of change in pricing should be expected.
- 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 was support is now light resistance.
3800 is support
3750 is good support and has assisted in keeping the selling in check
3700 is light support
3680 is light support – The 100 day moving average is at this valuation.
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 Mar 11 2021
At the close on Wednesday left behind technical indicators that continue to be supportive of the present uptrend. Even the MACD has lost a lot of the strength to the down signal.
The Rate Of Change is advising that we shouldn’t expect a big change in prices on Thursday. With the S&P now back into heavier resistance as it closed above the 21 day, Thursday will be a sideways day but the bias is still higher by the close.
Stock Market Outlook Archives
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Morning Investing Strategy Notes for Tue May 5 2026
Stock Market Outlook For Tue May 5 2026 – Overbought and Lower
Morning Investing Strategy Notes for Mon May 4 2026
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Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
Morning Investing Strategy Notes for Thu Apr 30 2026
Stock Market Outlook For Thu Apr 30 2026 – Dips Likely Possible Lower Close
Morning Investing Strategy Notes for Wed Apr 29 2026
Stock Market Outlook For Wed Apr 29 2026 – Choppy But Higher Ahead Of More Earnings
Morning Investing Strategy Notes for Tue Apr 28 2026
