What Happened On Mon Dec 11 2017
Monday saw a weak advance at the outset, strength as the day wore on and then a bit of weakness creep in by the end of the day. All 3 indexes moved still higher.
Closing Statistics for Mon Dec 11 2017
S&P 500 Index Close
The S&P index ended up 8.49 to 2659.99
Dow Jones Index Close
The Dow Jones ended up 56.87 to 24,386.03
NASDAQ Index Close
The NASDAQ closed up 35 to 6875.08
Stock Market Outlook – Review of Mon Dec 11 2017
Chart Comments At The Close:
On Monday the S&P pushed higher again by 0.32% to close just below the Upper Bollinger Band. This is the five trading day with the index below the Upper Bollinger Band which remains a bullish signal. The closing candlestick at the end of the day was also bullish.
All major moving averages are moving higher.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive and still rising.
MACD Histogram: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) issued a buy signal on Nov 28. The up signal is continuing to gain strength.
Ultimate Oscillator: 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. The Ultimate Oscillator signal is positive and rising.
Slow Stochastic: 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. The Slow Stochastic has an up signal in place for Tuesday.
Relative Strength Index: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It often is the first indicator to show an overbought or oversold signal. The RSI signal turned higher on Monday and is reaching overbought readings.
Rate of Change: 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. The rate of change signal is positive and higher again on Monday suggesting further upside in prices should be expected.
Support Levels To Be Aware Of:
The 2600 is building some light support.
There is good support at the 2550 level which could assist in keeping the index up for December.
The S&P has light support at 2480. It also has light support at 2450 and good support at 2425. Below that there is some support at 2400, 2380, 2350. 2300 has the most support at present.
Stock Market Outlook for Tomorrow – Tue Dec 12 2017
Monday’s market has no negative signals. All technical signals are pointing to a move higher and despite the Relative Strength Index (RSI) starting to show overbought signals, there is still room to the upside technically, for the S&P to move. Tuesday should end with the S&P higher.
We could see some weakness to start the day on Tuesday. That weakness will be an opportunity to setup more trades.
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