Prior Trading Day Summary:
On Monday low volume and lack of buying interest kept the market trading in a tight range. Some of the decline in volume can be attributed to investors who were away watching the solar eclipse rather than trading, such as myself.
The S&P closed down 2 points to 5202 and the NASDAQ rose 5 points to 16254. The day was almost a non-event with low volume, low volatility and low buying interest.
Let’s review the closing technical indicators on Mon Apr 8 2024 to see what to expect for Tue Apr 9 2024.
Stock Market Outlook: SPX Closing Chart For Mon Apr 8 2024
The index closed well below the Upper Bollinger Band and at the 21 day moving average. This is bearish to neutral.
The closing candlestick is neutral for Tuesday indicating not much change is anticipated.
The 21 day moving average is now turning sideways which is bearish.
The 50 day moving average is rising and at 5089, which is bullish.
The 100 and 200 day moving averages are climbing which is bullish. The 200 day is at 4699 on the SPX which is bullish.
The Bollinger Bands are moving into the start of another Bollinger Bands Squeeze. The Lower Bollinger Band is turning back up while the Upper Bollinger Band is turning lower. A new Bollinger Bands Squeeze is underway and at present the squeeze looks like it will end with stocks moving lower.
The S&P chart is more bullish than bearish for Tuesday.
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and negative.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Tue Apr 2. On Mon Apr 8 2024 the down signal gained strength. The MACD histogram is also strongly negative.
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Ultimate Oscillator: The Ultimate Oscillator is falling.
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Slow Stochastic: The Slow Stochastic has a down signal in place
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Relative Strength Index: The RSI signal is falling and positive.
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Rate of Change: The rate of change signal is falling indicating Tuesday will end lower.
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Stock Market Outlook: Support and Resistance Levels |
5275 is resistance |
5250 is resistance |
5225 is resistance |
5200 is resistance |
5190 is resistance |
5175 is resistance |
5150 is resistance |
5125 is support |
5115 is support |
5100 is support |
5075 is support |
5050 is support |
5025 is support |
5000 is light support |
4990 is light support |
4975 is light support |
4950 is support |
Stock Market Outlook for Tue Apr 9 2024
With most technical indicators shifting back to down, the S&P may have a tough day rising higher on Tuesday. However the technical indicators are advising that the any selling with be minor.
With the latest CPI numbers due out on Wednesday, we might see the index stay sideways in the morning today, but then move higher in the afternoon in anticipation of the CPI numbers.
Potential Economic and Political Market Moving Events
The major events this week are on Tuesday with the latest PMI numbers being released and the Fed’s Beige Book due out Wednesday at 2:00 PM.
Monday:
No economic reports
Tuesday:
6:00 NFIB optimism index is expected to rise slightly to 89.7