Wednesday saw another choppy session of trading with some deeper dips. By the close the S&P lost 12 points to end the day at 4688.
The NASDAQ lost 52 points to close at 15,921. Weakness was evident throughout the day on Wednesday despite excellent earnings again on Wednesday morning.
Let’s review Wednesday’s closing technical indicators to see what to expect for Thursday.
Stock Market Outlook Chart Comments At The Close on Tue Nov 16 2021
The close on Wednesday left behind a bearish candlestick for Thursday. As well the Lower Bollinger Band continues to rise pushing above the 50 day moving average which is bearish. The Upper Bollinger Band is trending sideways which is bearish.
The 21, 100 and 200 day moving averages are all climbing. This is bullish. The 50 day is not climbing which is bearish.
For Thursday the chart is still more bearish than bullish for a sixth trading day.
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is falling and positive.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Wed Oct 13 2021 . On Wednesday MACD issued an unconfirmed down signal.
- 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 which could turn into a down signal by the close on Thursday.
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 falling.
- 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 falling.
- 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:
4700 is resistance
4655 is resistance
4600 is resistance
4550 is light support
4525 is light support
4500 is support
4490 is support
4475 is support
4450 is support
4400 is support
4370 is light support
4350 is light support
4300 is light support
Stock Market Outlook for Tomorrow – Thu Nov 18 2021
For Thursday the signals are continuing to show weakness building in the index. The Moving Average Convergence / Divergence (MACD) issued an unconfirmed down signal on Wednesday.
Overall the signals are indicating we will see further dips on Thursday and another chance for a lower close.