Prior Trading Day Summary:
On Monday stocks opened higher reaching 5651, just 18 points below the all-time high for the SPX but then fell to 5602 before closing at 5617. The index lost 17 points for the day on low volume of less than 3 billion shares traded.
The NASDAQ lost 152 points to close at 17,725 on 5.2 billion shares traded. Despite the loss the NASDAQ had just 51 new 52 week lows but 277 new 52 week highs. The bias remains up for the NASDAQ.
With investors holding back and waiting for earnings from NVIDIA Stock (NVDA) which are due out on Wednesday after the close of trading, markets on Tuesday will probably stay sideways.
Let’s review the closing technical indicators from Mon Aug 26 2024 to see what the signals advise for Tue Aug 27 2024.
Stock Market Outlook: SPX Closing Chart For Mon Aug 26 2024
The index closed above all the major moving averages on Monday which is bullish.
The closing candlestick is bearish and signaling a sideways day is likely with some weakness.
The 21 day moving average is turning higher but failed to cross above the 50 day last week. This is bearish.
The 50 day moving average is rising and closed at 5491. This is bullish.
The 100 day moving average is rising and closed at 5350 which is bullish.
The 200 day moving average is in an uptrend and closed at 5125 which is bullish.
The Lower Bollinger Band is below the 100 day moving average and has turned lower which is bullish.
The Upper Bollinger Band is moving higher which is also bullish.
The S&P chart is strongly bullish but the closing candlestick is still warning of dips.
SPX Stock Market Outlook review of Mon Aug 26 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive. It is overbought.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Wed Aug 14 2024. On Mon Aug 26 2024 the up signal gained strength but note the histogram is losing strength which is a concern for the bulls.
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Ultimate Oscillator: The Ultimate Oscillator is falling and positive.
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Slow Stochastic: The Slow Stochastic has a down signal in place. It is overbought.
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Relative Strength Index: The RSI signal is falling and positive. It is not overbought.
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Rate of Change: The rate of change signal is falling signaling Tuesday will end lower.
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Stock Market Outlook: Support and Resistance Levels |
| 5660 is resistance |
| 5650 is resistance |
| 5625 is resistance |
| 5615 is resistance |
| 5600 is resistance |
| 5575 is resistance |
| 5550 is resistance |
| 5540 is resistance |
| 5525 is resistance |
| 5500 is resistance |
| 5470 is resistance |
| 5450 is resistance |
| 5425 is support |
| 5400 is support |
| 5375 is support |
| 5350 is support |
| 5325 is support |
| 5300 is support |
| 5275 is support |
| 5250 is support |
| 5225 is support |
| 5200 is support |
Stock Market Outlook for Tue Aug 27 2024
For Tuesday the technical indicators are a bit weaker and more are pointing lower. The MACD up signal is still quite good but it is losing some strength which is readily evident in the histogram bars.
With NVIDIA (NVDA) to report earnings on Wednesday after the close I am expecting a sideways day with some weakness and slightly lower close. Wednesday should see a bit more strength as investors prepare for NVIDIA earnings.
Durable goods orders on Monday provided a mixed outlook as you can see under Monday below.
Potential Economic and Political Market Moving Events
Monday:
8:30 Durable goods orders surprised and rose to 9.9% from the prior -6.7%
8:30 Durable goods orders less transportation however came in negative at -0.2%
Tuesday:
9:00 S&P Case-Shiller home price index is expected lower at 6.3% from 6.8% prior
10:00 Consumer confidence is expected to rise slightly to 101 from 100.3