Prior Trading Day Summary
On Mon Apr 20 2026 both the SPX and NASDAQ ended only slightly lower despite continuing worries over the Iran conflict and Strait of Hormuz. Many investors put aside their concerns and were watching for dips but they were shallow. By the close the SPX was down just 17 points to 7109 and the NASDAQ down only 64 points to 24404.
On both indexes up volume outpaced down volume which was remarkable considering the overbought market with limited support levels had many analysts calling for a strong pullback.
Let’s review the closing technical indicators from Mon Apr 20 2026, to see what they predict for Tue Apr 21 2026.
Stock Market Outlook: SPX Closing Chart For Mon Apr 20 2026
The index closed above all major moving averages but inside the Upper Bollinger Band. This is bullish.
The closing candlestick is bearish for Tuesday with a long shadow which usually signals dips should be expected again on Tuesday.
The 21 day moving average is rising sharply and closed at 6710. This is bullish
The 50 day moving average is rising and closed at 6775. This is bullish.
The 100 day moving average is rising and closed at 6765. This is bullish.
The 200 day moving average is rising and closed at 6618. This is bullish.
The Lower Bollinger Band is starting to turn sideways. The Upper Bollinger Band is rising which is bullish. The Bollinger Bands are widening which signals that a powerful and high momentum rally is underway. This signals that a strong breakout by the bulls is underway.
The SPX chart is bullish but with signs of stocks being extremely overbought. For Tuesday there are signs the SPX may end sideways for a second day.
SPX Stock Market Outlook review of Mon Apr 20 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive. This is bullish but showing signs of being overbought.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Apr 7 2026. On Mon Apr 20 2026 the up signal lost a bit f strength and is at extremely overbought readings.
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Ultimate Oscillator: The Ultimate Oscillator is falling and overbought. It is at levels where a pullback should be expected.
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Slow Stochastic: The Slow Stochastic has a down signal in place. It is extremely overbought. It is at levels where a pullback should be expected.
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Relative Strength Index: The RSI signal is falling and is extremely overbought. It is at levels where a pullback should be expected.
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| Rate of Change: The rate of change is falling and signaling a lower day is likely today. 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. |
Stock Market Outlook: Support and Resistance Levels |
| 7125 is resistance |
| 7100 is resistance |
| 7050 is resistance |
| 7000 is resistance |
| 6950 is resistance |
| 6900 is resistance |
| 6850 is resistance |
| 6830 is resistance |
| 6800 is support |
| 6780 is support |
| 6750 is support |
| 6735 is support |
| 6700 is support |
| 6675 is support |
| 6650 is support |
| 6625 is support |
| 6600 is support |
| 6585 is support |
| 6550 is support |
| 6500 is support |
Stock Market Outlook for Tue Apr 21 2026
Stocks are still very overbought. Monday’s action did nothing to alleviate this. Investors are unwilling to sell positions at this point in the rally. Tuesday will see earnings begin with earnest as many large caps begin reporting including UnitedHealth Group (UNH), 3M Company (MMM), GE Aerospace (GE), D R Horton (DHI) and others. If companies beat estimates it will add strength to the uptrend. On Tuesday dips are still likely but they will find ready buyers. A lower close is a possibility however overall the outlook is still strongly bullish.
Potential Economic and Political Market Moving Events
Monday:
No reports scheduled
Tuesday:
8:30 Retail sales are expected to rise to 1.5% from 0.6% prior
10:00 Business inventories are expected to rise to 0.3% from -0.1% prior
10:00 Pending home sales are estimated to fall 0.5% from 1.8% prior