Prior Trading Day Summary:
On Monday investors pushed stocks higher in the morning with the SPX reach 5325 before sellers returned. By the close investors had pushed stocks almost back to the morning open. The SPX closed up 5 points to 5308. The NASDAQ saw lower volumes than the past 3 trading days. With 6.8 billion shares traded, the NASDAQ closed up 109 points to end the day at 16,795.
Let review the closing technical signals from Mon May 20 2024 to see what to expect on Tue May 21 2024.
Stock Market Outlook: SPX Closing Chart For Mon May 20 2024
The index closed above the 21 day moving average and the 50 day but is now moving sideways as you can see in the chart below. This is still bullish but with some caution.
The closing candlestick is bullish but also signals Tuesday will again be choppy but with a good chance to close higher.
The 21 day moving average is back to the 50 day moving average. On Tuesday it will cross above the 50 day for an up signal.
The 50 day moving average is climbing which is bullish.
The 200 day moving average is still climbing. The 200 day is at 4811 which is bullish and the 100 day is also climbing to 5021.
The Lower Bollinger Band is below the 100 day moving average and rising which is bullish. The Upper Bollinger Band is turning higher. This is also bullish.
The S&P chart is bullish for Tuesday with some caution based on the sideways movement of the past 3 days of the SPX Index.
SPX Stock Market Outlook review of Mon May 20 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 20 2024.
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Ultimate Oscillator: The Ultimate Oscillator is falling and overbought.
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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 rising and positive. It is overbought.
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Rate of Change: The rate of change signal is rising strongly and signaling Tuesday will be higher.
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Stock Market Outlook: Support and Resistance Levels |
| 5310 is resistance |
| 5300 is resistance |
| 5275 is resistance |
| 5250 is resistance |
| 5225 is resistance |
| 5200 is resistance |
| 5190 is light support |
| 5175 is light support |
| 5150 is support |
| 5125 is support |
| 5115 is support |
| 5100 is support |
| 5075 is support |
| 5050 is support |
| 5025 is support |
| 5000 is light support |
Stock Market Outlook for Tue May 21 2024
For Tuesday the outlook is unchanged from Monday’s outlook. Many stocks remain overbought and the index is waiting for the next catalyst to push higher. That could happen on Wednesday with earnings from NVIDIA (NVDA) being released.
Palo Alto Networks (PANW) stock collapsed on Monday after hours by $28 for a loss of 8.7%. This is similar to the drop the stock had with its prior quarterly earnings. Investors both institutional and retail are getting tired of the volatility around earnings and we will see some weakness in Tech Stocks on Tuesday, especially in the morning.
Potential Economic and Political Market Moving Events
On Wednesday we get May’s FOMC minutes. That may end up being the most significant economic event this week.
Monday:
There are no reports released today.
Tuesday:
There are no reports released today.