On Wed Nov 8 2017 trading was choppy. Much of the morning and lunch hour was spent with indexes in negative territory but the losses were very small which pointed to only weakness. This meant that the markets would try to turn positive during the afternoon or into Thursday.
Financial stocks continued to weigh on the indexes on Wednesday but many tech stocks moved higher. Apple Stock rose to another new high on Wednesday, up 0.82%. By the close indexes recovered with small gains but still, new all-time highs on the first anniversary of the election of Trump as President.
S&P 500 Index Close
The S&P index ended up 3.74 at 2594.38
Dow Jones Index Close
The Dow Jones ended up 6.13 at 23,563.36
NASDAQ Index Close
The NASDAQ closed up 21.33 to 6789.12
Stock Market Outlook
Stock Market Outlook of Thu Nov 9 2017
Chart Comments At The Close:
The Bollinger Bands Squeeze is continuing despite showing signs earlier that it was about to end. All the major moving averages are still climbing.
The S&P closed just below the Upper Bollinger Band again today and the morning dip down to 2585 was snapped up by investors. The index closed just off the closing high.
The closing candlestick on Wed Nov 8 2017 was bullish for Thu Nov 9 2017.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive moving higher.
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. I have been predicting the sell signal will turn to a buy signal but that prediction is playing “hard to get”. Wednesday saw the signal still negative but just by 0.02. It should turn positive on Thursday which would be a buy signal.
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 signal is rising.
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 is neutral and overbought.
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 back rising.
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 posting sideways.
Support Levels To Be Aware Of:
There is support at the 2550 level which could assist in pushing the index higher in November.
The S&P has light support at 2480. It also has light support at 2450 and good support at 2425. Below that there is some support at 2400, 2380, 2350. 2300 has the most support at present.
Stock Market Outlook for Tomorrow – Thu Nov 9 2017
Stocks in the afternoon turned positive and the technical indicators gained further upside readings.
Technically the markets are now set for more sideways action but the bias which had changed to lower for Wednesday has now shifted to higher for Thursday. We should get a buy signal from MACD which could indicate a further rise in the S&P beyond 2600 this week.
For an early peek at Friday, if the S&P doesn’t push to 2600 on Thursday it should reach that level on Friday. It might not hold, but there is a good chance for the S&P to touch that level.
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