Stock Market Outlook for Tue Oct 29 2019 – Bias Is Higher

Monday saw a new all-time intraday high and a new closing higher for the S&P. It also saw a very boring day with the index tightly range bound to within 14 points from the day’s low to the day’s high. Despite this, volume rose and investors were snapping up stocks.

Stock Market Outlook Chart Comments At The Close on Mon Oct 28 2019 

The SPX chart is bullish and closed above 3000 again. The Upper Bollinger Band is rising and the Lower Bollinger Band is falling, indicating more upside lies ahead for the index.

Despite the tight trading range on Monday, the closing candlestick is bullish for Tuesday.

All the major moving averages are climbing including the 50 and 21 day moving averages.

The two buy signals from September are still in place.

The 200 day moving average is now above the Lower Bollinger Band which is a bullish signal.

Stock Market Outlook review of Mon Oct 28 2019

Stock Market Outlook: Technical Indicators Review:

Momentum: Momentum is positive and rising.

• Settings: For momentum I use a 10 period when studying market direction.

MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Oct 15 2019. The up signal was stronger on Monday.

• Settings: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. 

Ultimate Oscillator: The Ultimate Oscillator signal is positive but unchanged or sideways from Friday.

• Settings: 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.

Slow Stochastic: The Slow Stochastic has a weak up signal in place and is extremely overbought.

• Settings: 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.

Relative Strength Index: The RSI signal is rising.

• Settings: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor.  It is often the first indicator to show an overbought or oversold signal.

Rate of Change: The rate of change signal is rising indicating higher prices are expected.

• 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.

Support and Resistance Levels To Be Aware Of:

3000 is resistance

2960 is light support

2950 was light support

2900 is light support

2860 is light support

2840 is support

2800 is strong support

2795 is light support

2745 to 2750 is light support

2725 is light support

2700 is light support

2675 is light support

2650 is support

2625 is light support

2600 is support.

 Stock Market Outlook for Tomorrow – Tue Oct 29 2019 

In the support and resistance numbers, 3000 is still resistance. It will take a few dips back to establish whether 3000 will become support for the index. At present, it is still resistance.

Monday by the close saw much stronger technical indicators. Again there are no indicators pointing to a possible move back down for the index. Instead, all the indicators are pointing to further upside for the S&P.

Tuesday could see some weakness in the morning thanks to Alphabet releasing poor earnings numbers. But any dip in the stock on Tuesday will be seen as a buying opportunity. Within a week or possibly even less, we will see the stock recovered as investors will have forgotten the earnings numbers. Amazon is an excellent example of this bull market. The stock rose today and is back just $3.00 below where it closed on Thursday before earnings plunged the stock on Friday morning. These are signs there is more upside ahead for stocks.

Tuesday may see another day of a tight trading range, but the close will be higher again.

Stock Market Outlook Archives

Stock Market Outlook for Fri Apr 19 2024 – Deeply Oversold – Bounce Likely – Higher Close

Prior Trading Day Summary: Thursday saw another morning bounce attempt but no follow through. However the SPX did not break below 5000 and managed to close at 5011 although minutes ....... Read More

Morning Investing Strategy Notes for Thu Apr 18 2024

For FullyInformed Members the morning Investing Strategy Notes for Thu Apr 18 2024 discuss the outlook for Thursday and a possible bounce or a move lower. There are trade ideas ....... Read More

Stock Market Outlook for Thu Apr 18 2024 – Deeply Oversold – Bounce Attempt Expected

Prior Trading Day Summary: Wednesday saw a bounce attempt at the open which managed to reach 5078 before selling once again pushed stocks lower. By 12:45 stocks looks almost ready ....... Read More

Morning Investing Strategy Notes for Wed Apr 17 2024

For FullyInformed Members the morning Investing Strategy Notes for Wed Apr 17 2024 discuss the outlook for a potential bounce on Wednesday. There are trade ideas outlined in Las Vegas ....... Read More

Stock Market Outlook for Wed Apr 17 2024 – Another Bounce Attempt

Prior Trading Day Summary: Tuesday found stocks stuck in a fairly tight trading range as investors remain worried about a potential Israeli retaliatory strike against Iran and what might be ....... Read More

Morning Investing Strategy Notes for Tue Apr 16 2024

For FullyInformed Members the morning Investing Strategy Notes for Tue Apr 16 2024 discuss the outlook for stocks for Tuesday and the chance of a bounce. There are trade ideas ....... Read More

Stock Market Outlook for Tue Apr 16 2024 – Deeply Oversold

Prior Trading Day Summary: Monday started the day as expected with a massive rally at the open and a push higher especially when retail sales came in stronger than expected. ....... Read More

Morning Investing Strategy Notes for Mon Apr 15 2024

For FullyInformed Members the morning Investing Strategy Notes for Mon Apr 15 2024 discuss the outlook for stocks for Monday as well as the third week as a whole. There ....... Read More

Stock Market Outlook for Mon Apr 15 2024 – Expect A Bounce

Prior Trading Day Summary: On Friday investors got better than expected bank earnings but sold bank stocks lower. The selling extended into other sectors until by the close the indexes ....... Read More

Morning Investing Strategy Notes for Fri Apr 12 2024

For FullyInformed Members the morning Investing Strategy Notes for Fri Apr 12 2024 discuss the CPI numbers released on Thursday and the outlook for stocks for the remainder of the ....... Read More

Stock Market Outlook for Fri Apr 12 2024 – All About Bank Earnings

Prior Trading Day Summary: On Thursday investors got a bit of good news. First the Weekly Initial Unemployment Insurance Claims came in lower than expected at 211,000. If the weekly ....... Read More

Morning Investing Strategy Notes for Thu Apr 11 2024

For FullyInformed Members the morning Investing Strategy Notes for Thu Apr 11 2024 discuss the PPI numbers due out today before markets open. There are trade ideas outlined in Wells ....... Read More

Stock Market Outlook for Thu Apr 11 2024 – Weakness and Lower

Prior Trading Day Summary: On Wednesday the CPI number was higher than estimates. For many analysts it meant that the Fed would probably delay any rate cut longer than expected. ....... Read More

Morning Investing Strategy Notes for Wed Apr 10 2024

For FullyInformed Members the morning Investing Strategy Notes for Wed Apr 10 2024 discuss the CPI numbers due out today at 8:30 and the 2:00 PM FOMC minutes.. There are ....... Read More

Stock Market Outlook for Wed Apr 10 2024 – All About The CPI Numbers

Prior Trading Day Summary: On Tuesday the morning saw stocks plunge but not as deep as on Thursday. That brought in the dip buyers who picked through the stocks and ....... Read More