Prior Trading Day Summary:
On Monday stocks spent the day recovering from a morning sell-off and by the late afternoon it was up 24 points. The close saw the SPX at 5935. Volume was low at 4.9 billion shares but 53% of the volume was being traded higher.
The NASDAQ closed up 128 points to 19242. Volume was just 7.9 billion, the lowest day for volume since May 6. Despite this 57% of volume was being traded higher on the index.
Lets review the technical indicators from the close on Mon Jun 2 2025 to see what we should expect for Tue Jun 3 2025.
Stock Market Outlook: SPX Closing Chart For Mon Jun 2 2025
The index closed above all major moving averages but below the Upper Bollinger Band. Despite today’s push higher you can clearly see in the chart that the index is trending sideways which is bearish.
The closing candlestick is bearish with a long shadow which usually signals a weak day for Tuesday.
The 21 day moving average is rising and closed at 5826 which is bullish. At the close on Friday Mar 23, the 21 day moved further above the 100 day. There are now just two down signals left from the late March and early April collapse.
The 50 day moving average is rising and closed at 5610 which is bullish.
The 100 day moving average is rising and closed at 5731 which is bullish.
The 200 day moving average is rising and closed at 5673 which is bullish.
The Lower Bollinger Band is moving higher which is bullish. The Upper Bollinger Band is moving higher which is bullish.
For Tue Jun 3 2025 the SPX chart is more bullish than bearish although the closing candlestick on Monday is a potential warning.
SPX Stock Market Outlook review of Mon Jun 2 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and negative.
|
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Fri May 30. The down signal was confirmed on Monday by the close.
|
Ultimate Oscillator: The Ultimate Oscillator is rising.
|
Slow Stochastic: The Slow Stochastic has a neutral signal in place.
|
Relative Strength Index: The RSI signal is rising.
|
| Rate of Change: The rate of change signal is falling signaling a lower 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 |
| 6000 is resistance |
| 5990 is resistance |
| 5975 is resistance |
| 5950 is resistance |
| 5925 is resistance |
| 5900 is resistance |
| 5850 is resistance |
| 5800 is resistance |
| 5785 is resistance |
| 5750 is support |
| 5700 is support |
| 5650 is support |
| 5630 is support |
| 5600 is support |
| 5550 is support |
| 5500 is support |
| 5475 is support |
| 5450 is support |
| 5400 is support |
Stock Market Outlook for Tue Jun 3 2025
The technical indicators were not impressed with Monday’s trading action. The indicators that were negative going into Monday are more negative as the day ended.
The MACD technical indicator, one of the more accurate signals, confirmed the next move is lower.
For Tuesday expect more selling and a lower close.
Potential Economic and Political Market Moving Events
Monday:
9:45 S&P final manufacturing PMI was slightly lower than estimated at 52.0
10:00 ISM Manufacturing met estimates at 48.5%
10:00 Construction spending fell more than estimated, down -0.4%
During the day auto sales are to be announced. Estimates are for 17.0 to 17.3 million autos to have been sold
Tuesday:
10:00 Factory order are estimated to fall to -3.3%
10:00 Job openings are expected to dip slightly to 7.1 million from 7.2 million.