What Happened On Mon Jan 8 2018
Following the best opening week in more than 10 years, the indexes took a breather today and spent much of the day slightly negative, although the S&P and NASDAQ both pushed into positive numbers for the close.
Closing Statistics for Mon Jan 8 2018
S&P 500 Index Close
The S&P index ended up 4.56 to 2747.71
Dow Jones Index Close
The Dow Jones ended down 12.87 to 25283.00
NASDAQ Index Close
The NASDAQ closed up 20.83 to 7157,39
Stock Market Outlook – Review of Mon Jan 8 2018
Chart Comments At The Close:
The day still saw a positive close and a bullish candlestick at the close. The Index is still holding just above the Upper Bollinger Band. Meanwhile the Lower Bollinger Band has once again fallen below the 50 day moving average which is an indication of weakness to the present rally.
All the major moving averages are still climbing and a new support level, albeit light support, is in place at 2675. It is not strong enough to stop a pullback but it would slow it. When there is a larger dip in coming weeks, it should fall to this level to test for support.
Stock Market Outlook review of Jan 8 2018
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive and once again unchanged.
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 Jan 4. The buy signal is stronger at the close on Monday.
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. It is overbought.
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 is extremely overbought and neutral.
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 is rising higher into overbought.
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 rising.
Support Levels To Be Aware Of:
2675 and 2620 are light support.
There is good support at the 2550 level.
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 but would represent a full correction as a drop to this level would be almost 15%.
Stock Market Outlook for Tomorrow – Tue Jan 9 2018
The technical indicators remain very positive but also very overbought. We are going to see weakness again On Tuesday but dips are nothing to worry about. Instead they are opportunities to setup more trades.
Tuesday should end neutral to slightly up.
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