Monday was a strong day for the S&P with the index opening above Friday’s close and closing at the highs of the day. The S&P closed at 3431, the first close above 3400 and a new all-time high both at the close and intraday as investors cheered further Covid19 developments.
Stock Market Outlook Chart Comments At The Close on Mon Aug 24 2020
On Monday the closing candlestick is bullish for Tuesday. This is the third bullish candlestick in 7 trading sessions.
Note that while the Upper Bollinger Band continues to rise, the Lower Bollinger Band is still trending just below the 50 day and could easily cross above the 50 day which would give investors a potential down signal.
There are still 6 up signals and one down signal caused when the Lower Bollinger Band moving above the 100 day moving average back on July 27.
The 21, 50, 100 and 200 day moving averages are continuing to climb. The SPX chart is still more bullish than bearish and technical indicators are more bullish Monday night as well.
Stock Market Outlook review of Aug 24 20
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is rising.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thursday Aug 20. On Monday MACD reversed course and issued an unconfirmed up signal. We still need to see if the up signal will be confirmed.
- 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 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 an up signal in place and is still 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 rising.
- 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 which indicates changes in pricing should be expected.
- 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:
3450 is resistance
3400 is resistance
3375 is resistance
3300 is resistance
3275 is support
3200 is support
3150 is support
3050 is support
3000 is support
2975 is light support
2950 is light support
2900 is light support
Stock Market Outlook for Tomorrow – Tue Aug 25 2020
For Tuesday we have two up signals, one from MACD and another from the Slow Stochastic. As well all the technical indicators are rising indicating that another up day should be expected on Tuesday.
The strength of the rally on Monday was enough to push the index up a full 1 percent. Often this will mean a few dips on the next day. However any dips on Tuesday will be snapped up by investors as the outlook continues to be higher.
Stock Market Outlook Archives
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Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
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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
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