What Happened On Mon Nov 20 2017:
Monday saw stocks open higher, turn sideways and then cling to positive territory but just barely.
Closing Statistics for Mon Nov 20 2017:
S&P 500 Index Close
The S&P index ended up 3.29 to 2582.14
Dow Jones Index Close
The Dow Jones ended up 72.09 to 23,430.33
NASDAQ Index Close
The NASDAQ closed up 7.92 to 6790.71
Stock Market Outlook – Review of Mon Nov 20 2017
Stock Market Outlook for Tue Nov 21 2017
Chart Comments At The Close:
On Monday the S&P hardly changed as it drifted sideways closing up 3.29 points for a gain of 0.13%. The candlestick at the end of the day was bearish for Tuesday.
The index managed to stay above the 21 day moving average which is bullish.
The Bollinger Bands Squeeze is still continuing with no clear signals as to the direction stocks may move out of the squeeze.
All major moving averages are still climbing.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is falling and negative.
MACD Histogram: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) issued a sell signal on Oct 24. The sell signal is weaker again by the close on Monday.
Ultimate Oscillator: The Ultimate Oscillator settings are: Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months. The Ultimate Oscillator signal continued to fall.
Slow Stochastic: For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic tries to predict the market direction further out than just one day. The Slow Stochastic issued an up signal at the close on Monday.
Relative Strength Index: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It often is the first indicator to show an overbought or oversold signal. The RSI signal is rising for Tuesday.
Rate of Change: 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. The rate of change signal is positive but falling for Tuesday.
Support Levels To Be Aware Of:
There is support at the 2550 level which could assist in pushing the index higher in November.
The S&P has light support at 2480. It also has light support at 2450 and good support at 2425. Below that there is some support at 2400, 2380, 2350. 2300 has the most support at present.
Stock Market Outlook for Tomorrow – Tue Nov 21 2017
For Tue Nov 21 2017, the signals are still weak but there are a few changes. The Slow Stochastic moved from neutral to an up signal. The Relative Strength Index (RSI) also moved up. The signals are now split with 1 negative, 1 with a sell signal and 2 moving lower and 2 rising. Overall the index looks weak but the close on Tuesday could see the index end either way, up or down.
With this week being so short the chance of any sell-off is limited. Tuesday will probably end either flat on the day or slightly higher.
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