Prior Trading Day Summary:
On Wednesday stocks finished primarily unchanged. The SPX closed down less than a point and the NASDAQ slipped just 30 points.
Many stocks wandered on Wednesday but stayed in tight trading range. Many stocks are overbought but buyers continue to pick at stocks on dips.
Let’s review the closing technical indicators from Wed May 8 2024 to see what investors should expect on Thu May 9 2024.
Stock Market Outlook: SPX Closing Chart For Wed May 8 2024
The index closed above the 21 day moving average and the 50 day. This is bullish.
The closing candlestick is signaling that Thursday will see some further selling and a chance for a lower close. The index might retest the 50 day moving average down at 5136.
The 21 day moving average is below the 50 day moving average for a down signal but should turn up shortly. The first down signal is still in effect.
The 50 day moving average is back climbing which is bullish.
The 200 day moving average is still climbing. The 200 day is at 4774 which is bullish and the 100 day is also climbing.
The Lower Bollinger Band is below the 100 day moving average but turned sideways and should climb shortly. The Upper Bollinger Band is falling which is bearish.
The S&P chart is equally bullish as it is bearish for Thursday.
SPX Stock Market Outlook review of Wed May 8 2024 – chart courtesy TradingView
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri May 3. The up signal gained more strength on Wed May 8 2024.
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Ultimate Oscillator: The Ultimate Oscillator is rising and overbought.
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Slow Stochastic: The Slow Stochastic has a potential change signal in place and is overbought.
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Relative Strength Index: The RSI signalhas a potential change signal and positive. It is overbought.
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Rate of Change: The rate of change signal is unchanged for Thursday indicating stocks may have a hard time rising today.
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Stock Market Outlook: Support and Resistance Levels |
| 5275 is resistance |
| 5250 is resistance |
| 5225 is resistance |
| 5200 is resistance |
| 5190 is resistance |
| 5175 is resistance |
| 5150 is resistance |
| 5125 is resistance |
| 5115 is resistance |
| 5100 is support |
| 5075 is support |
| 5050 is support |
| 5025 is support |
| 5000 is light support |
| 4990 is light support |
| 4975 is light support |
| 4950 is support |
Stock Market Outlook for Thu May 9 2024
For Thursday the close on Wednesday continues to point to bullishness but with many stocks overbought we could see a choppy day or sideways action with the potential for a lower close. The 50 day moving average might be tested today. Overall markets remain bullish.
On Thursday we get the latest Weekly Initial Unemployment Insurance Claims which could move markets at the open depending on the weekly numbers.
Potential Economic and Political Market Moving Events
The main event this week is on Friday when the consumer sentiment is released.
Monday:
Two Fed Presidents speak. One at 12:50 and a second at 1:00 PM. Their comments are not expected to impact stocks.
Tuesday:
3:00 Consumer Credit expected to rise to $15.0 billion
Wednesday:
10:00 Whole inventories dipped to -0.4%
Thursday:
8:30 Weekly Initial Unemployment Insurance Claims are expected to come in at 214,000