Prior Trading Day Summary
On Mon Jan 5 2026 stocks bounced with oil stocks jumping higher following the Venezuela operation. Chevron Stock (CVX) was a big winner, rallying 5.1% to $163.85 helping to propel the Dow Jones to a new all-time intraday high of $49209 before closing at 48,977. Precious metals also had an excellent day.
The S&P closed up 43 points to 6902 on 5.8 billion shares traded, the highest daily volume since Dec 19. 67% of all stocks were rising.
The NASDAQ rose 160 points to close at 23,395. Volume was 8.8 billion shares, the highest volume since Dec 19. 70% of stocks were rising by the close.
Let’s review the closing technical indicators from Jan 5 2026 to see what to expect on Tue Jan 6 2026.
Stock Market Outlook: SPX Closing Chart For Mon Jan 5 2026
The index closed below the Upper Bollinger Band but above the 21 day moving average. This is still bearish but signals a potential bounce to continue today.
The closing candlestick is bullish but with a long shadow indicating a probable dip on Tuesday.
The 21 day moving average is rising and closed at 6858. This is bullish but the rise in the 21 day is still minimal.
The 50 day moving average is rising and closed at 6809. This is bullish.
The 100 day moving average is rising and closed at 6666 which is bullish.
The 200 day moving average is rising and closed at 6421 which is bullish.
The Lower Bollinger Band is rising which is bullish. The Upper Bollinger Band is rising which is bullish. A Bollinger Bands Squeeze is underway. The initial outlook appeared higher for stocks out of the squeeze but caution is advised until the signal is clearer.
The SPX chart is more bullish than bearish although Monday’s move higher appeared more a bounce than a rally.
SPX Stock Market Outlook review of Mon Jan 5 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 Tue Dec 23 2025. On Fri Jan 2 an unconfirmed down signal was generated. On Mon Jan 5 2026 the down signal was not confirmed.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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Slow Stochastic: The Slow Stochastic has a down signal in place which is ready to turn to an up signal.
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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 Tuesday. 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 |
| 6950 is resistance |
| 6925 is resistance |
| 6900 is resistance |
| 6875 is resistance |
| 6850 is resistance |
| 6800 is resistance |
| 6775 is resistance |
| 6750 is resistance |
| 6715 is resistance |
| 6700 is resistance |
| 6675 is support |
| 6650 is support |
| 6625 is support |
| 6600 is support |
| 6590 is support |
| 6570 is support |
| 6550 is support |
| 6500 is support |
Stock Market Outlook for Tue Jan 6 2026
Monday was the final day of the much anticipated Santa Claus Rally. The SPX had to close above 6909. It came close, closing at 6902 but intraday it reached 6920. Overall the Santa Claus Rally was poor but technically can be said to have met the criteria.
On Tuesday there are signals of a choppy day with dips likely, particularly in the morning. The close should be higher.
Potential Economic and Political Market Moving Events
Monday:
10:00 ISM Manufacturing index for Dec came in lower than estimated at 47.9%. Anything below 50% is considered a signal of contraction.
Through the day we get auto sales
Tuesday:
9:45 S&P final services PMI for Dec is estimated at 51.9, down slightly from 52.9