Day’s Summary
On Monday trading volumes were largely negative but all three indexes closed higher which should set stocks up for further gains. Many stocks were too oversold and i investors stepped back in on Monday.
The S&P rose 25 points to close at 4489 and the NASDAQ rose 143 points to close at 13788. It was the best day for the NASDAQ in August.
Let’s review the technical indicators from the close on Monday to see what to expect for Tue Aug 15 2023.
Stock Market Outlook: SPX Closing Chart For Tue Aug 15 2023
The index closed below the 21 day moving average for a seventh day. This is bearish but the closing candlestick held above the 50 day moving average and the Lower Bollinger Band. This is bullish.
The closing candlestick on Monday is bullish but also signaling stocks are still oversold.
The 21 day moving average is turned sideways. The 50, 100 and 200 day moving averages are continuing to climb which is bullish.
The Lower Bollinger Band fell slightly but is still bearish. The Upper Bollinger Band is turning sideways which could be signaling a potential bounce. A new Bollinger Bands Squeeze is still ongoing. At present the squeeze looks like stocks will move lower but often stocks actually dip and then recover to move higher.
Stock Market Outlook review of Mon Aug 14 2023
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and negative. It is signaling oversold.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thursday Jul 27. On Mon Aug 14 2023 the down signal was still strong. It is at a level where often we will see a strong bounce.
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Ultimate Oscillator: The Ultimate Oscillator is rising, negative and trying to bounce from oversold.
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Slow Stochastic: The Slow Stochastic has an up signal in place. It is very oversold and signaling there is a bounce coming.
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Relative Strength Index: The RSI signal is rising sharply and ready to turn positive.
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Rate of Change: The rate of change signal is rising but still signaling oversold.
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Stock Market Outlook: Support and Resistance Levels |
| 4600 is resistance |
| 4575 is resistance |
| 4550 is resistance |
| 4525 is resistance |
| 4500 is support |
| 4485 is support |
| 4470 is support |
| 4450 is support |
| 4435 is support |
| 4420 is support |
| 4400 is support |
| 4390 is support |
| 4370 is support |
| 4350 is support |
| 4340 is support |
| 4325 is support |
| 4310 is support |
| 4300 is support |
| 4290 is support |
| 4275 is support |
| 4250 is support |
| 4240 is support |
| 4225 is support |
| 4210 is support |
| 4200 is good support |
Stock Market Outlook for Tue Aug 15 2023
For Tuesday the technical indicators are signaling that stocks are still oversold and there is more room to the upside.
The day should end positive for the S&P and NASDAQ on Tuesday.
Potential Economic and Political Market Moving Events
Tuesday:
8:30 Retail sales including without autos
8:30 Import price index including minus fuel
8:30 Empire state manufacturing survey
10:00 Business inventories
10:00 NAHB builders confidence index