The Stock Market Outlook for Wed Nov 1 2017 was for a positive close but for weakness to be evident. Nothing shows weakness better than all three indexes making new 52 week highs intraday and then closing well below those highs. In the case of the NASDAQ, it closed negative as many tech names gave back early morning gains.
S&P 500 Index Close
The S&P index ended up 4.10 to 2579.36
Dow Jones Index Close
The Dow Jones ended up 57.77 to 23,435.01
NASDAQ Index Close
The NASDAQ closed down 11.14 to 6716.53
Stock Market Outlook
Stock Market Outlook for Nov 2 2017
Chart Comments At The Close:
The S&P pushed higher on Wednesday to a new all-time high which sent the index above the Upper Bollinger Band. Unfortunately investors gave back the rally and the index closed well off the high. The close though because it gave back the high, left behind a bearish candlestick. We have seen a number of bearish candlesticks at the close over the past 4 or 5 days and none have managed to follow through on any downside action of any note. That could again be the case.
The difference this time though could end up being the Bollinger Bands Squeeze which has become quite tight and should shortly give way to either the index moving higher or lower. My guess is still unchanged at up.
All the major moving averages are continuing to rise which is bullish.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive, unchanged or moving sideways.
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 a sell signal on Oct 24. The sell signal was weak and unchanged again on Thursday.
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 is positive, and unchanged.
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 changed to a down signal.
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 often is the first indicator to show an overbought or oversold signal. The RSI signal is unchanged.
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. The rate of change signal is positive and unchanged.
Support Levels To Be Aware Of:
The S&P has light support at 2480. It has light support at 2450 and good support at 2425. There is also light support at 2400, 2380, 2350 and 2300.
Stock Market Outlook for Tomorrow – Thu Nov 2 2017
Technically most signals are sitting sideways. There are now 2 down signals but the remaining signals are all pointing sideways.
For Thu Nov 2 2017 we may see some downside action or some negative action. Weakness is building in the index and we could see a negative close on Thursday but if there is one, it is an opportunity to setup trades as the general outlook is still up for the S&P.
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