What Happened On Tue Nov 21 2017
The Stock Market Outlook for Tue Nov 21 2017 had been one of where either the day would end rather flat or it would have a slight bias higher. Instead stocks shot higher on Tuesday with Technology leading the way. All new highs were made by all 3 major indexes on Tuesday in the second best single day rally for November. The close saw all indexes near their highs.
Closing Statistics for Tue Nov 21 2017
S&P 500 Index Close
The S&P index ended up 16.89 to 2599.03
Dow Jones Index Close
The Dow Jones ended up 160.50 to 23,590.83
NASDAQ Index Close
The NASDAQ closed up 71.76 to 6862.48
Stock Market Outlook – Review of Tue Nov 21 2017
Stock Market Outlook review of Tue Nov 21 2017
Chart Comments At The Close:
On Tuesday the S&P moved up 0.65% for the second best one day move of November. The index managed to push above 2600 but closed at 2599.03 just off the high of the day. This lines up the index at about the same position as it was on Nov 8 when it reached 2595.47. If the index closes above 2600 on Wednesday the S&P may have broken out for another move higher into December’s holiday season.
The closing candlestick is bullish for Wednesday.
The index is above the 21 day moving average which is bullish.
The Bollinger Bands Squeeze is still continuing but today we might have seen the first signal of it possibly ending as the Upper Bollinger Band and Lower Bollinger Band started to widen as the day progressed. This would indicate the squeeze will end with the S&P moving higher.
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 rising and positive.
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 Tuesday.
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 is positive and trending sideways.
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 confirmed the recent up signal.
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 Wednesday.
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 and rising.
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 – Wed Nov 22 2017
For Wed Nov 22 2017 the S&P looks set to break out to new highs. We could see a slight dip in the morning as the index flirts with 2600 but any dip is a trading opportunity. With Wednesday being the last full day this week, that too is bullish.
Technically the rally today did strengthen the outlook to the upside. We should see a higher close on Wednesday. Thursday is a holiday and Friday is a half day. I am expecting Friday to be higher as well.
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