Prior Trading Day Summary:
Friday’s rally was ended with the second best rally of the week. The SPX rallied 59 points to end the week at 5996 but intraday it moved back 6000. Volume was higher than usual for the day before the long weekend at 4.4 billion shares traded. There were 95 new 52 week highs and 12 new lows. 47% of all volume was to the upside despite only 45% of stocks climbing. The week ended with a 169 point gain for the best one week gain since the first week of November. The week was strong enough to see a new unconfirmed up signal from the MACD technical indicator by the close.
The NASDAQ rose 292 points ending the day at 19630 on 8.2 billion shares traded, the best volume of the week. 67% of al volume was to the upside and 61% of all stocks were rising. For the week the NASDAQ rose 626 points, the best week since the first week of December.
Following the long weekend and the start of a new Presidency and Administration the week ahead could face a number of unknown along with more quarterly earnings.
Let’s review the technical indicators at the close on Fri Jan 17 2025 to see what to expect for Tue Jan 21 2025.
Stock Market Outlook: SPX Closing Chart For Fri Jan 17 2025
The index closed above all major moving averages which is bullish.
The closing candlestick has double shadows which signal a dip could happen or a bounce could ensue for Tuesday.Overall the candlestick is bullish.
The 21 day moving average fell back to 5930 which is bearish. It fell below the 50 day moving average Monday Jan 13 which is a down signal.
The 50 day moving average is rising and closed at 5967 which is bullish.
The 100 day moving average is rising and closed at 5824 hich is bullish.
The 200 day moving average is rising and closed at 5595 which is bullish.
The Lower Bollinger Band is rising which is bullish. The Upper Bollinger Band is falling which is bearish. We may see a Bollinger Bands Squeeze later this week.
For Tuesday, the SPX chart is more bullish than bearish.
SPX Stock Market Outlook review of Fri Jan 17 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Tuesday Dec 10 2024 . An unconfirmed up signal was issued Fri Jan 17 at the close.
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Ultimate Oscillator: The Ultimate Oscillator is still in an uptrend.
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Slow Stochastic: The Slow Stochastic has an up signal in place and continuing higher.
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Relative Strength Index: The RSI signal is rising and near overbought levels.
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Rate of Change: The rate of change signal is rising and signaling Tuesday will end higher.
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Stock Market Outlook: Support and Resistance Levels |
| 6100 is strong resistance |
| 6090 is resistance |
| 6070 is resistance |
| 6050 is resistance |
| 6025 is resistance |
| 6015 is resistance |
| 6000 is resistance |
| 5990 is resistance |
| 5970 is resistance |
| 5950 is support |
| 5900 is support |
| 5890 is support |
| 5875 is support |
| 5850 is support |
| 5830 is support |
| 5800 is support |
| 5780 is support |
| 5725 is support |
| 5700 is support |
Stock Market Outlook for Tue Jan 21 2025
For Tue Jan 21 2025 the day starts with an unconfirmed up signal from the MACD technical indicator. This is the first up signal since the signal changed to down, Dec 10.
For Monday stocks may open flat to lower but the technical indicators and the SPX chart are pointing to a higher close on Monday. The 5950 valuation changed to support on Friday.
The unconfirmed MACD up signal is expected to be confirmed Tuesday by the close.
Potential Economic and Political Market Moving Events
Monday:
Martin Luther King Jr Day
Tuesday:
No event scheduled