Prior Trading Day Summary
On Wednesday stocks soared as strong earnings from Advanced Micro Devices Stock (AMD) sparked another rally.
The SPX made another new intraday high as it reached 7369. The index closed up 106 points to end the day at 7365 on 6.7 billion shares traded. By the close 67% of all stocks on the index were rallying for a second day.
The NASDAQ also made a new high on Wednesday, reaching 25,850 before closing at 25,838. Volume rose to 9.1 billion shares. New highs on the index rose to 557. This is the best one day showing of new NASDAQ highs since Nov 11 2024.
Let’s review the closing technical indicators from Wed May 6 2026 to see what they predict for Thu May 7 2026.
Stock Market Outlook: SPX Closing Chart For Wed May 6 2026
The index closed above all major moving averages at the Upper Bollinger Band. This is bullish.
The closing candlestick is bullish for Thursday but also signals overbought once again.
The 21 day moving average is rising sharply and closed at 7084. This is bullish.
The 50 day moving average is rising and closed at 6845. This is bullish but below the 100 day moving average.
The 100 day moving average is rising and closed at 6855. Each day that the 100 day is above the 50 day is a sign of underlying weakness to the uptrend.
The 200 day moving average is rising and closed at 6836. This is bullish.
The Lower Bollinger Band is turning higher and has moved above the 200 day moving average. This is bearish. The Upper Bollinger Band is moving higher which is bullish.
The SPX chart is more bullish than bearish for Thursday while the closing candlestick is signaling stocks are overbought again.
SPX Stock Market Outlook review of Wed May 6 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising. This is bullish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Apr 7 2026. On Wed May 6 2026 the up signal gained strength which is bullish.
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Ultimate Oscillator: The Ultimate Oscillator is rising which is bullish.
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Slow Stochastic: The Slow Stochastic has an up signal in place. It is extremely overbought. It is at levels where a pullback should be expected.
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Relative Strength Index: The RSI signal is rising and is at overbought readings.
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| Rate of Change: The rate of change is rising and signaling a higher close is likely. 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 |
| 7370 is resistance |
| 7350 is resistance |
| 7280 is resistance |
| 7250 is resistance |
| 7230 is resistance |
| 7200 is resistance |
| 7190 is resistance |
| 7175 is resistance |
| 7150 is resistance |
| 7125 is resistance |
| 7100 is resistance |
| 7050 is resistance |
| 7000 is resistance |
| 6950 is resistance |
| 7000 is support |
| 6950 is support |
| 6900 is support |
| 6875 is support |
| 6850 is support |
| 6800 is support |
| 6780 is support |
| 6750 is support |
| 6735 is support |
Stock Market Outlook for Thu May 7 2026
For Thu May 7 2026 the SPX is back into strong overbought readings. The MACD technical indicator has turned up after a couple of weeks of falling. This is a bullish signal.
Overall for Thursday with stocks overbought, there is the possibility of dips but a higher close is expected. The ADP report on Wednesday was much stronger than expected which is also a bullish signal. Friday we get the non-farm payroll report for April.
Potential Economic and Political Market Moving Events
Monday:
10:00 Factory orders for March were a lot higher than estimated coming in at 1.5%
Tuesday:
8:30 Trade balance was slightly les than expected coming in at $60.3 billion.
10:00 Job openings came in at 6.87 million, among the higher end of the estimates.
10:00 New Home sales for March rose to 6.87 million which was above estimates.
9:45 S&P final services PMI came in lower than estimated at 51.0
10:00 ISM services came in lower than estimated at 53.6%
Wednesday:
8:15 ADP employment rose well above estimates at 109,000
Thursday:
8:30 Weekly Initial Unemployment Insurance Claims for May 2 are estimated at 206,000 up from 189,000 prior
8:30 US productivity is estimated at 1.1% down from 1.8% prior
10:00 Construction spending for March is estimated at 0.3%
3:00 Consumer credit is estimated at $12.5 billion up from $9.5 billion prior