Wednesday Oct 30 saw the highly anticipated rate cut from the Fed. With the Fed Policy in a “good place” according to Fed Chair Powell, investors pushed the index to another new intraday and closing high.
Stock Market Outlook Chart Comments At The Close on Wed Oct 30 2019
The SPX chart is bullish and closed above 3000 again on Wednesday. The Upper Bollinger Band is rising and the Lower Bollinger Band is falling, indicating more upside lies ahead for the index.
The closing candlestick on Wednesday is bullish for Thursday.
All the major moving averages are climbing including the 50 and 21 day moving averages.
The two buy signals from September are still in place.
The 200 day moving average is now above the Lower Bollinger Band which is a bullish signal.
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is positive and moving more sideways than up or down.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Oct 15 2019. The up signal was strong on Wednesday.
- 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 signal is positive and 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 a down signal in place and is extremely 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 sideways and 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 rising.
- 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:
3000 is resistance
2960 is light support
2950 was light support
2900 is light support
2860 is light support
2840 is support
2800 is strong support
2795 is light support
2745 to 2750 is light support
2725 is light support
2700 is light support
2675 is light support
2650 is support
2625 is light support
2600 is support.
Stock Market Outlook for Tomorrow – Thu Oct 31 2019
By the close on Wednesday the technical indicators saw a number of changes including a down signal from the Slow Stochastic. Aside from that signal, the rest are either up or sideways.
Thursday should see the index display some weakness but the close should be higher. Friday brings in the jobs numbers for October so we may see a bit of sideways action at times on Thursday. Overall though, the outlook is still up for the index even if it dips on Thursday.