Prior Trading Day Summary:
The anticipated bounce in equities occurred on Monday as investors picked through many downtrodden names.
The S&P ended the day up 62 points to close at 5471, which placed the index back above the 5450 support level.
The NASDAQ rose 194 points to end the day at 16,884.
The bounce on Monday doesn’t signal the end of the selling but was a good sign nonetheless.
Let’s review the closing technical indicators from Mon Sep 9 2024 to see what the signals advise for Tue Sep 10 2024.
Stock Market Outlook: SPX Closing Chart For Mon Sep 9 2024
The index closed below the 21 and 50 day moving average and above the 100 day which is bearish.
The closing candlestick is signaling that Monday’s move higher was a bounce but not an up signal.
The 21 day moving average is higher at 5534. This is bullish.
The 50 day moving average was lower and closed at 5504. This is bearish.
The 100 day moving average is rising and closed at 5381 which is bullish.
The 200 day moving average is in an uptrend and closed at 5160 which is bullish.
The Lower Bollinger Band is below the 100 day moving average and turning up which is bearish.
The Upper Bollinger Band is turned lower. This is bearish.
The S&P chart is split almost equally between bullish and bearish for Tuesday.
SPX Stock Market Outlook review of Mon Sep 9 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and negative.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thu Sep 5 2024. The down signal gained strength on Monday.
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Ultimate Oscillator: The Ultimate Oscillator is falling and negative.
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Slow Stochastic: The Slow Stochastic has a down signal in place. It is oversold.
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Relative Strength Index: The RSI signal is rising and negative.
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Rate of Change: The rate of change signal is falling signaling Tuesday will end lower.
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Stock Market Outlook: Support and Resistance Levels |
| 5615 is resistance |
| 5600 is resistance |
| 5575 is resistance |
| 5550 is resistance |
| 5540 is resistance |
| 5525 is resistance |
| 5500 is support |
| 5470 is support |
| 5450 is support |
| 5425 is support |
| 5400 is support |
| 5375 is support |
| 5350 is support |
| 5325 is support |
| 5300 is support |
Stock Market Outlook for Tue Sep 10 2024
For Tuesday there are a few technical indicators that suggest the index could try to move a bit higher again today, or certainly in the morning.
The MACD technical indicator gained more strength to the downside which remains a primary concern for the market on Tuesday.
For Tuesday, expect another attempt in the morning to move higher but a dip negative is likely. The close should be lower.
Potential Economic and Political Market Moving Events
Monday:
10:00 Wholesale inventories are expected to rise slightly to 0.3% from 0.2%
3:00 Consumer credit is estimated to rise to $12.0 billion from $8.9 billion.
Tuesday:
6:00 AM NFIB optimism index is expected to come in at 98.6, down from 98.7 prior.