Prior Trading Day Summary
On Monday indexes opened lower with the SPX falling below the 21 day moving average but finding buyers ready. Many of the buyers probably missed the last bounce and didn’t want to wait for any move closer to the 50 day moving average. Buying was relatively swift although choppy at times.
The SPX ended the day up 37 points to close at 6974. Volume was lower by a billion shares from Friday’s trading but 57% of stocks were climbing by the close.
The NASDAQ rose by 130 points to close at 23,592 on 9.1 billion shares traded, 500 million less than we saw on Friday. 56% of all stocks were rising by the close.
Despite the lower volume, trading action was reasonably swift which usually points to a higher follow-up day for Tuesday. This Friday’s January non-farm payroll report will not be released and no firm date has been set for when it will be.
Let’s review the closing technical indicators for Mon Feb 2 2026 to see what to expect for Tue Feb 3 2026.
Stock Market Outlook: SPX Closing Chart For Mon Feb 2 2026
The index closed above the Lower Bollinger Band andall major moving averages which is bullish.
The closing candlestick is bullish for Tuesday with a small shadow which indicates a bit of choppiness is probably today.
The 21 day moving average is rising and closed at 6931. This is bullish.
The 50 day moving average is rising and closed at 6864. This is bullish.
The 100 day moving average is rising and closed at 6752 which is bullish.
The 200 day moving average is rising and closed at 6510 which is bullish.
The Lower Bollinger Band is turning higher which is bullish. The Upper Bollinger Band is also higher which is bullish. The Bollinger Bands Squeeze is is still in play and stocks look set to move higher out of the present squeeze.
The SPX chart is more bullish than bearish for Tuesday.
SPX Stock Market Outlook review of Mon Feb 2 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive. This is bullish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Wed Jan 28 2026. Monday’s higher close left behind a weak up signal.
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Ultimate Oscillator: The Ultimate Oscillator is still rising
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Slow Stochastic: The Slow Stochastic has a down signal in place and is falling from overbought.
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Relative Strength Index: The RSI signal is rising.
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| Rate of Change: The rate of change is rising and signaling a higher close for today. 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. |
Stock Market Outlook: Support and Resistance Levels |
| 7025 is resistance |
| 7000 is resistance |
| 6950 is resistance |
| 6925 is resistance |
| 6900 is resistance |
| 6875 is resistance |
| 6850 is resistance |
| 6800 is resistance |
| 6775 is support |
| 6750 is support |
| 6725 is support |
| 6700 is support |
| 6675 is support |
| 6650 is support |
| 6625 is support |
| 6600 is support |
Stock Market Outlook for Tue Feb 3 2026
For Tuesday the SPX signals are pointing to a higher day and close as Monday’s bounce is set to continue. We could see a close near 7000 today.
Most of the technical signals are shifting back to the bullish side despite volume dropping on Monday.
On Monday after the close Palantir Tech Stock (PLTR) rose on the back of better than estimated earnings. This should help the index on Tuesday.
On Monday the economic reports were better than estimated and all pointed to the economy expanding further in January.
For Tuesday, watch for a choppy day but with Monday’s bounce continuing to a higher close.
Potential Economic and Political Market Moving Events
Monday:
9:45 S&P flash manufacturing PMI for Jan was higher than estimated at 52.4 versus 51.8 prior
10:00 ISM manufacturing for Jan was far stronger than estimated coming in at 52.6%up from 47.9% prior
During the day we got auto sales which rose 2% to 16.2 million, a slight beat but still a decent performance
Tuesday:
10:00 Job openings for Dec (delayed) are estimated at 7.1 million