Prior Trading Day Summary
On Monday stocks saw some minor pressure and ended the day slightly lower.
The SPX lost 29 points to close at 7200 on 5.2 billion shares traded. 63% of all stocks were falling by the close.
The NASDAQ slipped 46 points to close at 25,067 with 38% of stocks falling by the close.
Losses though were very mild.
Let’s review the closing technical indicators from Mon May 4 2026, to see what they predict for Tue May 5 2026.
Stock Market Outlook: SPX Closing Chart For Mon May 4 2026
The index closed above all major moving averages but inside the Upper Bollinger Band for a 10th day. The SPX is trading sideways and not actually climbing. This is bearish.
The closing candlestick is bearish for Tuesday with shadows top and bottom on the candlestick.
The 21 day moving average is rising sharply and closed at 7017. This is bullish.
The 50 day moving average is rising and closed at 6827. This is bullish but below the 100 day moving average.
The 100 day moving average is rising and closed at 6836. Each day that the 100 day is above the 50 day is a sign of underlying weakness to the uptrend.
The 200 day moving average is rising and closed at 6670. This is bullish.
The Lower Bollinger Band is turning higher which is bearish. It is moving above the 200 day probably on Tuesday. This is bearish. The Upper Bollinger Band is turning sideways which is bearish.
The SPX chart is more bullish than bearish for Tuesday but the overbought nature at present is a drag on the rally. We may see the index slip lower for a couple of days before regaining the uptrend.
SPX Stock Market Outlook review of Mon May 4 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling. This is bearish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Apr 7 2026. On Mon May 4 2026 the up signal lost more strength which is bearish.
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Ultimate Oscillator: The Ultimate Oscillator is falling.
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Slow Stochastic: The Slow Stochastic has a down signal in place. It is extremely overbought. It is at levels where a pullback should be expected.
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Relative Strength Index: The RSI signal is falling
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| Rate of Change: The rate of change is falling and signaling a lower close is likely. 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 |
| 7250 is resistance |
| 7230 is resistance |
| 7200 is resistance |
| 7190 is resistance |
| 7175 is resistance |
| 7150 is resistance |
| 7125 is resistance |
| 7100 is resistance |
| 7050 is resistance |
| 7000 is resistance |
| 6950 is resistance |
| 6900 is resistance |
| 6875 is support |
| 6850 is support |
| 6800 is support |
| 6780 is support |
| 6750 is support |
| 6735 is support |
| 6700 is support |
| 6675 is support |
| 6650 is support |
| 6625 is support |
| 6600 is support |
Stock Market Outlook for Tue May 5 2026
For Tuesday we could see investors try to get an uptrend started but the outlook is for any uptrend to fail today and the index to close lower. Any loss today will be small.
Potential Economic and Political Market Moving Events
Monday:
10:00 Factory orders for March were a lot higher than estimated coming in at 1.5%
Tuesday:
8:30 Trade balance is estimated at -$60.9 billion, up from -$57.3 billion prior
10:00 Job openings are estimated to rise to 6.8 million
10:00 New Home sales for March are estimated at 660,000
9:45 S&P final services PMI is estimated at 51.3
10:00 ISM services are estimated at 54.3%