On Monday the news took center stage as tensions between North Korea and the USA reached boiling points.
This put pressure on stock indexes as many stocks were caught pulling back. In particular many of the big name stocks that have been the darling of investors, such as Netflix, Apple and Facebook pulled back on Monday.
S&P 500 Index Close
The S&P index ended down 5.56 to 2496.66
Dow Jones Index Close
The Dow Jones ended down 53.50 to 22,296.09
NASDAQ Index Close
The NASDAQ closed down 56.33 to 6370.59
Stock Market Outlook
Stock Market Outlook review of Sep 25 2017
Chart Comments At The Close:
The S&P on Monday closed slightly lower, just below 2500. The closing candlestick however is neutral for Tuesday rather than bearish.
The 21 DY moving average is continuing to move higher, away from the 50 day moving average and the 100 and 200 day moving averages.
The 100 and 200 day moving average are continuing to climb despite changes in the markets today.
Most signals by the close were more bullish than bearish.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive but falling and could turn negative on Tuesday.
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 was a bit weaker on Monday.
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 and overbought.
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 has a down signal in place for Tuesday.
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 lower and has room to fall further before it reaches oversold.
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 still climbing in support of the market but is turning sideways.
Support Levels To Be Aware Of:
The market 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 – Tuesday Sep 26 2017
For Tuesday the technical indicators are pointing to further weakness developing. There are though, no signals that point to the markets moving deeply lower. Instead what we see is a market that will probably drift sideways for a few days and keep a down bias. The S&P is not yet done with the 2500 level. The dip below it today shouldn’t last very long before the S&P retakes 2500. Watch for a choppy day on Tuesday with a lower close.
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