Prior Trading Day Summary:
On Monday stocks spent most of the day drifting sideways while waiting for the PPI numbers on Tuesday and CPI numbers on Thursday. Both of these numbers will give a clearer picture of the inflation outlook.
The SPX ended the day down just 1 point while the NASDAQ closed up 47 points.
Let’s review the closing technical indicators from Mon May 13 2024to see what to expect for Tue May 14 2024.
Stock Market Outlook: SPX Closing Chart For Mon May 13 2024
The index closed above the 21 day moving average and the 50 day and at the Upper Bollinger Band. This is bullish.
The closing candlestick is bullish for Tuesday.
The 21 day moving average is still below the 50 day moving average for a down signal. It is still not showing signs of moving back up. This is bearish.
The 50 day moving average is climbing which is bullish.
The 200 day moving average is still climbing. The 200 day is at 4787 which is bullish and the 100 day is also climbing.
The Lower Bollinger Band is below the 100 day moving average and starting to turn lower. This is bullish. The Upper Bollinger Band is turning higher. This is bullish.
The S&P chart is more bullish that bearish for Tuesday which could support the bulls even if the PPI numbers disappoint.
SPX Stock Market Outlook review of Mon May 13 2024 – chart courtesy TradingView
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri May 3. The up signal gained more strength on Mon May 13 2024.
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Ultimate Oscillator: The Ultimate Oscillator is falling.
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Slow Stochastic: The Slow Stochastic has a potential change signal in place and is overbought.
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Relative Strength Index: The RSI signal is falling and positive. It is overbought.
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Rate of Change: The rate of change signal is rising signaling that Tuesday will be higher.
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Stock Market Outlook: Support and Resistance Levels |
| 5275 is resistance |
| 5250 is resistance |
| 5225 is resistance |
| 5200 is resistance |
| 5190 is resistance |
| 5175 is resistance |
| 5150 is resistance |
| 5125 is support |
| 5115 is support |
| 5100 is support |
| 5075 is support |
| 5050 is support |
| 5025 is support |
| 5000 is light support |
| 4990 is light support |
| 4975 is light support |
| 4950 is support |
Stock Market Outlook for Tue May 14 2024
On Tuesday investors get the latest Producer Price reports. As well Fed Chair Powell speaks at 10:30. These events could swing stocks up or down. However for Tuesday the technical indicators are mixed. Overall the bias is still to the bulls even if the PPI numbers disappoint. The initial reaction could be to sell stocks lower but the technical indicators are advising that any dip, especially a strong one, will find ready buyers.
If the PPI numbers are weaker than estimated, watch for stocks to initially rally. The PPI numbers are released at 8:30.
Fed Chair Powell speaks at 10:00 AM. Watch for a rally or a drop as he speaks. Once he is done speaking however, I expect stocks to regain their losses and move higher.
Potential Economic and Political Market Moving Events
There are a number of reports this week that will impact markets. The Producer Price Index on Tuesday and Consumer Price Index on Wednesday could move markets.
Monday:
There are no reports released today.