On Monday all 3 indexes made new intraday highs and new closing highs. The Dow Index ended within 50 points of the 23,000 level.
S&P 500 Index Close
The S&P index ended up 4.47 to 2557.64
Dow Jones Index Close
The Dow Jones ended up 85.24 to 22,956.96
NASDAQ Index Close
The NASDAQ closed up 18.20 to 6624.00
Stock Market Outlook
Stock Market Outlook review of Mon Oct 16 2017
Chart Comments At The Close:
On Monday the S&P moved slightly higher and left behind a bullish candlestick. Often though this candlestick precedes a down day. However if that happens, usually stocks recover the next day.
All the major moving averages and the 21 day moving average are moving higher which is bullish. The Upper Bollinger Band is also moving higher, again bullish for the market.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive but continuing to slip.
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 buy signal on Aug 31. The buy signal is still eroding.
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 is positive, no longer overbought but back rising.
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 is extremely overbought. It is wavering between up and down signals. For Tuesday it is signaling down.
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 showing the market is still overbought and it is trending sideways but keeping a slight bias up. Prices should move higher.
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 trending sideways which indicates prices are not expected to change much on Tuesday.
Support Levels To Be Aware Of:
The S&P has light support at 2480. It has light support at 2450 and good support at 2425. There is also light support at 2400, 2380, 2350 and 2300.
Stock Market Outlook for Tomorrow – Tue Oct 17 2017
There is some weakness in the S&P which you can see in the technical indicators, but the general direction up remains well intact despite the market remaining fairly overbought.
Netflix after hours was higher on Monday and on Tuesday we get a slew of earnings before the markets open. As long as there are no earnings disappointments on Tuesday the market should continue to keep a bullish bias.
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