Prior Trading Day Summary
On Tuesday stocks rose strongly on the back of dropping consumer confidence and falling job openings. Both of these are seen by many analysts as signals that the high interest rates are starting to have an impact.
The S&P soared 64 points to close at 4497, just shy of 4500. The bears have suddenly become quiet again.
The NASDAQ ended the day up 238 points to end the day at 13,943.
Volumes were back to average.
The rally has been strong over the past 3 days and a new up signal from MACD is the result.
Let’s review the SPX index from Tuesday to see what to expect for Wed Aug 30 2023.
Stock Market Outlook: SPX Closing Chart For Tue Aug 29 2023
The index closed above the 50 day and 21 day moving averages. The 21 day continued to move lower below the 50 day for a down signal but this could change within a couple of days.
The closing candlestick on Tuesday is bullish but also indicates the move up on Tuesday is a bit overdone.
The 100 and 200 day moving averages are continuing to climb which is bullish and the 50 day is turning sideways.
The Lower Bollinger Band is turning higher and moved above the 100 day which is bullish. The Upper Bollinger Band is moving lower which signals a potential Bollinger Bands Squeeze coming soon.
Stock Market Outlook review of Tue Aug 29 2023
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thursday Jul 27. On Wed Aug 30 2023 a new unconfirmed up signal was issued.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive.
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Slow Stochastic: The Slow Stochastic has an up signal in place.
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Relative Strength Index: The RSI signal is rising, positive and nearing overbought readings.
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Rate of Change: The rate of change signal is rising.
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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 support |
| 4450 is support |
| 4435 is support |
| 4420 is support |
| 4400 is support |
| 4390 is support |
| 4370 is support |
| 4350 is support |
| 4340 is support |
| 4325 is support |
| 4310 is support |
| 4300 is support |
| 4290 is support |
| 4275 is support |
Stock Market Outlook for Wed Aug 30 2023
A new unconfirmed up signal was generate by the close on Tuesday thanks to a 3 day rally of strength. We should see the up signal be confirmed on Wednesday. Also on Wednesday we get the latest retail inventories and GDP. Either of these could impact stocks today.
The outlook though is higher for the index as investors pile back into stocks in a major move that has left bearish investors puzzled and on the sidelines again.
Potential Economic and Political Market Moving Events
This week’s major events are retail inventories on Wednesday and CPI on Thursday. Friday we get the non-farm payroll numbers for August.
Tuesday:
8:15 ADP employment expect to come in at 200,000
8:30 GDP is expect at 2.4%
8:30 Advanced retail inventories
8:30 Advanced wholesale inventories
10:00 Pending home sales