Prior Trading Day Summary:
On Monday investors continued the rally but while the closes were slightly higher, selling is taking place more often as some investors are scaling back on the size of their holdings. This is typical in a strong rally as investors hope they can buy back the shares they have sold at a lower price.
The SPX rose almost 6 points and closed at 6001, the highest all-time close and first close above 6,000. Volume was 4.5 billion shares with 429 new 52 week highs and just 29 new 52 week lows.
The NASDAQ rose 12 points to close at 19,298, its highest all-time close as well. Volume was 8.3 billion. here were 584 new 52 week highs and 108 new lows.
The volumes and strength of the rally is reaching a pivot point.
Let’s review the technical signals from Mon Nov 11 2024 to see what they predict for Tue Nov 12 2024.
Stock Market Outlook: SPX Closing Chart For Mon Nov 11 2024
The index traded all day above the Upper Bollinger Band and all major moving averages. This is bullish.
The closing candlestick is still bullish but it is signaling stocks are very overbought and investors should prepare for some dips.
The 21 day moving average rose and is at 5840. This is bullish.
The 50 day moving average is higher at 5735. This is bullish.
The 100 day moving average is rising and closed at 5620 which is bullish.
The 200 day moving average is in an uptrend and closed at 5381 which is bullish.
The Lower Bollinger Band is below the 50 day moving average which is bullish. The Upper Bollinger Band is moving higher which is bullish as the Bollinger Bands widen which signals a higher move is still ahead for the index.
The S&P chart is bullish for Tuesday but is signaling very overbought and due to dip back at any time.
SPX Stock Market Outlook review of Mon Nov 11 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Thu Nov 7 2024. The up signal was stronger today.
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Ultimate Oscillator: The Ultimate Oscillator is rising and overbought.
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Slow Stochastic: The Slow Stochastic has an up signal in place and overbought.
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Relative Strength Index: The RSI signal is rising and overbought.
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Rate of Change: The rate of change signal is falling which indicates a lower day or a flat day for Tuesday.
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Stock Market Outlook: Support and Resistance Levels |
| 6025 is resistance |
| 6015 is resistance |
| 6000 is resistance |
| 5990 is resistance |
| 5970 is resistance |
| 5950 is resistance |
| 5900 is rsistance |
| 5890 is resistance |
| 5875 is resistance |
| 5850 is resistance |
| 5815 is resistance |
| 5800 is support |
| 5790 is support |
| 5775 is support |
| 5765 is support |
| 5750 is support |
| 5725 is support |
| 5700 is support |
Stock Market Outlook for Tue Nov 12 2024
For Tuesday the technical indicators are showing signs of the rally slowing. If you look at the Ultimate Oscillator for example you can see the signals are still rising but not as strong and signaling a move sideways is likely.
Other technical indicators are also feeling the stress of the rally with the Rate Of Change advising that today we could see deeper dips and even a flat to lower close.
The index has reached a pivotal point in the rally. Either its breaks above 6000 and keeps moving higher or it dips lower and consolidates gains. Trading volume today showed there is a growing number of investors taking profits. They are not selling out but reducing the size of some trades and raising cash. Usually that signals that many investors believe the upside to be more limited and they believe they can buy the stocks they sold, at a lower price.
For Tuesday, expect dips and a flat close, or a break higher signaling more upside before the rally rests.
Potential Economic and Political Market Moving Events
Monday:
Veterans Day. Bond market is closed.
Tuesday:
6:00 NFIB optimism index is expected to rise to 92.0 from 91.5