Prior Trading Day Summary:
On Monday stocks attempted a bounce but found few dip buyers. Instead each bounce found sellers ready and by the close the SPX index fell in the final 10 minutes of trading to close below the 6000 level at 5983, for loss of 29 points. Volume was 5.1 billion, 400 million less than Friday’s decline and the down volume at 55% was far less than Friday’s 77% down volume. As well 53% of stocks were falling by the close versus 72% falling on Friday. The close on Monday saw Friday’s down signal from the MACD technical indicator confirmed.
The NASDAQ lost 237 points versus 438 points on Friday. Volume was 1.1 billion less shares traded at 7.6 billion. The index ended the day at 19,524. 64% of stocks were declining versus 73% of stocks on Friday.
We can see from the stats that while the market is selling lower, there is no panic as the majority of investors still believe this down move will be short-lived.
Let’s review the SPX technical indicators from Mon Feb 24 2025 to see what to expect for Tuesday’s trading.
Stock Market Outlook: SPX Closing Chart For Mon Feb 24 2025
The index fell below the 50 day moving average and closed at the Lower Bollinger Band. This is bearish.
The closing candlestick is showing oversold but remains bearish. A bounce could occur but a lower close is more likely for Tuesday.
The 21 day moving average is falling and closed at 6063 which is bearish.
The 50 day moving average is falling and closed at 6008 which is bearish.
The 100 day moving average is rising and closed at 5917 which is bullish.
The 200 day moving average is rising and closed at 5696 which is bullish.
The Lower Bollinger Band is falling which is bearish at present. The Upper Bollinger Band is trending sideways which is bearish. The present Bollinger Bands Squeeze is showing signs that stocks may move lower out of the squeeze this week.
For Tuesday the SPX chart is more bearish than bullish but another bounce attempt is possible on Tuesday.
SPX Stock Market Outlook review of Mon Feb 24 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and negative.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Mon Feb 21 2025. The down signal was confirmed on Monday at the close.
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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 for a third day.
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Relative Strength Index: The RSI signal is falling entering oversold readings.
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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 |
| 6150 is resistance |
| 6125 is resistance |
| 6100 is resistance |
| 6090 is resistance |
| 6070 is resistance |
| 6050 is resistance |
| 6025 is resistance |
| 6015 is resistance |
| 6000 is support |
| 5990 is support |
| 5970 is support |
| 5950 is support |
| 5900 is support |
| 5890 is support |
| 5875 is support |
| 5850 is support |
Stock Market Outlook for Tue Feb 25 2025
For Tue Feb 25 2025 the SPX is starting the day just below major support at 6000. A bounce attempt at the open or early in the trading day is likely. Again though unless dip buyers return the bounce won’t have staying power yet. With much uncertainty on the economic front in everything from interest rates to inflation to retail sales to the impact of tariffs presently weighing on stocks. We may find that if Home Depot (HD) earnings this morning are better than expected the morning could try to stay positive. Many investors are waiting for NVIDIA earnings that are due out on Wednesday. That may also keep buyers away from trading the dip on Tuesday. With a new MACD confirmed down signal there is a good chance the day will end lower.
Potential Economic and Political Market Moving Events
Monday:
No events
Tuesday:
9:00 S&P Case-Shiller home price index us expected to be lower at 4.0 down from 4.3% prior
10:00 Consumer confidence is expected to slip to 102.4 from 104.1 prior