Prior Trading Day Summary
On Monday, stocks moved higher from the open. The lack of any economic data helped the bulls on Monday.
All 3 indexes were higher. The SPX was up 30 points to 4487. The NASDAQ rose 156 points to end the day at 13,917.
Let’s review the SPX from Mon Sep 11 2023 to see what to expect for Tue Sep 12 2023.
Stock Market Outlook: SPX Closing Chart For Mon Sep 11 2023
The index closed above the 50 day and the 21 day moving average. This is bullish.
The closing candlestick on Monday had a long shadow (tail) which signals Tuesday will normally see some selling in the morning and a dip back below the 50 day moving average.
The 50, 100 and 200 day moving averages are continuing to climb which is bullish.
The Lower Bollinger Band is moving below the 100 day which is bullish. The Upper Bollinger Band is moving sideways. The index is entering a Bollinger Bands Squeeze as of the close on Monday.
Stock Market Outlook: Technical Indicators Review
|Momentum: Momentum is unchanged and positive.|
|MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Aug 29 2023. On Mon Sep 11 2023 the up signal rose slightly.|
|Ultimate Oscillator: The Ultimate Oscillator is rising and positive.|
|Slow Stochastic: The Slow Stochastic has a down signal but is on the verge of issuing an up signal.|
|Relative Strength Index: The RSI signal is rising and positive.|
|Rate of Change: The rate of change signal is rising and positive.|
Stock Market Outlook: Support and Resistance Levels
|4600 is resistance|
|4575 is resistance|
|4550 is resistance|
|4525 is resistance|
|4500 is resistance|
|4485 is resistance|
|4470 is resistance|
|4450 is support|
|4435 is support|
|4420 is support|
|4400 is support|
|4390 is support|
|4370 is support|
|4350 is support|
Stock Market Outlook for Tue Sep 12 2023
For Tuesday the technical indicators are turning back to the positive side and the Moving Average Convergence / Divergence up signal, gained some strength on Monday in the rally.
The closing just above the 50 day moving average is good news for the bulls. There will be some selling on Tuesday, probably in the morning. It will not however mark an end to the present spike higher. The day will end with the SPX higher, even if only slightly.
Wednesday investors get the core CPI numbers. That often is preceded by a rise in valuations the day before.
Potential Economic and Political Market Moving Events
This week the core CPI numbers on Wednesday and PPI numbers on Thursday will impact stocks.
2:00 Federal Budget is expected to rise to -$245 billion from -$220 billion