Stock Market Outlook for Tue Sep 12 2023 – Morning Weakness But Higher Close

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 review of Mon Sep 11 2023

Stock Market Outlook: Technical Indicators Review

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.

Tuesday:

2:00 Federal Budget is expected to rise to -$245 billion from -$220 billion