Investors saw dips on Wednesday thanks in large part to Microsoft Stock (MSFT), Alphabet Stock (GOOGL) and Boeing Stock (BA), to name just three. Yet even with declining volume rising on Wednesday investors were still buying and kept the market above 3800.
By the close the S&P lost just 23 points ending the day at 3830. The NASDAQ naturally had a worse day, dropping 228 points to end at 10970.
Let’s review the closing technical indicators from Wed Oct 26 2022 to see what to expect for Thu Oct 27 2022.
Stock Market Outlook Chart Comments At The Close on Wed Oct 26 2022
On Wednesday the S&P closing candlestick was still above the 21 day and just below the 50 day moving average. The candlestick indicates a push higher could be in the cards for Thursday.
The Bollinger Bands Squeeze is continuing to end which is currently bullish.
The 21 day moving average is moving higher which is bullish.
The Upper Bollinger Band is rising and the the Lower Bollinger Band is pulling back. Both are bullish signals.
All the remaining moving averages are still falling which is bearish.
There are now 7 down signals in place since April and no up signals.
The chart is 55% bearish for Thursday but even a slight bounce in Microsoft Stock (MSFT) or Alphabet Stock (GOOGL) on Thursday will assist in the market pushing back higher.
Stock Market Outlook review of Wed Oct 26 2022
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is unchanged and positive. Readings are at levels last seen in mid-August’s rally.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Thursday Oct 16. On Wednesday the up signal gained more strength. The histogram also gained more strength.
- 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 falling and positive.
- 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 in place and is signaling overbought.
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 and positive. It is signaling the market is overbought.
- 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 unchanged and positive.
- 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:
3900 is resistance
3875 is resistance
3850 is resistance
3825 is resistance
3800 is resistance
3775 is light resistance
3750 is light resistance
3730 is light support
3700 is light support
3675 is light support
3650 is light support
3625 is light support
3600 is good support and is a decline of 25%
Stock Market Outlook for Tomorrow – Thu Oct 27 2022
The technical indicators are weaker at the close on Wednesday but they are still showing enough strength to turn the market back up.
Meta Stock (META) was pummeled after hours but it was widely expected. This will impact the NASDAQ on Thursday but perhaps not as much as many analysts expect.
On Thursday the indexes may try to hold on and even turn positive as earnings from Apple and Amazon are released after hours. Many are expecting the numbers to be strong enough to keep Apple stock at $150.
Thursday will see some choppy trading but the bias is still higher on the day.
Potential Market Moving Events
This week the best market moving events are the earnings announcements. However there are a number of economic events that may have some impact especially on Friday when investors are treated to a number of inflation reports.
Wednesday:
10:00 New home sales were higher than expected at 603,000
Thursday:
8:30 Real GDP
8:30 Weekly Initial Unemployment Insurance Claims
8:30 Durable goods orders
8:30 Core Capital equipment orders
Stock Market Outlook Archives
Stock Market Outlook For Wed May 6 2026 – Choppy But Higher Still
Morning Investing Strategy Notes for Tue May 5 2026
Stock Market Outlook For Tue May 5 2026 – Overbought and Lower
Morning Investing Strategy Notes for Mon May 4 2026
Stock Market Outlook For Mon May 4 2026 – Dips Likely With Possible Lower Close
Morning Investing Strategy Notes for Fri May 1 2026
Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
Morning Investing Strategy Notes for Thu Apr 30 2026
Stock Market Outlook For Thu Apr 30 2026 – Dips Likely Possible Lower Close
Morning Investing Strategy Notes for Wed Apr 29 2026
Stock Market Outlook For Wed Apr 29 2026 – Choppy But Higher Ahead Of More Earnings
Morning Investing Strategy Notes for Tue Apr 28 2026
