Prior Trading Day Summary
On Tuesday tariff worries and economic slow down concerns dominated the news and markets. Considering how “dire” some investors and commentators appeared, markets held up quite well.
The SPX fell 31 points to 6299 with 51% of volume still being traded higher.
The NASDAQ fell 137 points to 20916 on 8.3 billion shares traded. 54% of volume however was still being traded higher.
Lets review the closing technical indicators from Tue Aug 5 2025 to see what they predict for Wed Aug 6 2025.
Stock Market Outlook: SPX Closing Chart For Tue Aug 5 2025
The index closed below the Upper Bollinger Band and just below the 21 dy moving average. This is bearish.
The closing candlestick is bearish for Wednesday.
The 21 day moving average slipped on Tuesday and closed at 6307.
The 50 day moving average is rising and closed at 6148 which is bullish.
The 100 day moving average is rising and closed at 6015 which is bullish.
The 200 day moving average is rising and closed at 5859 which is bullish.
The Lower Bollinger Band is turning sideways which is negative but it is above the 50 day moving average. The Upper Bollinger Band is moving sideways which is bearish. The Bollinger Bands Squeeze is still in play but stocks look set to pullback out of the latest squeeze.
The SPX chart is weaker for Wednesday but overall momentum in the market still favors the bulls.
SPX Stock Market Outlook review of Tue Aug 5 2025
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 Tue Jul 15. On Tue Aug 5 2025 the down signal gained strength.
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Ultimate Oscillator: The Ultimate Oscillator is falling
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Slow Stochastic: The Slow Stochastic has a down signal in place.
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Relative Strength Index: The RSI signal is falling.
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| Rate of Change: The rate of change signal is rising signaling a higher close is expected for Wednesday. Settings: 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. With the Rate Of Change, prices are rising when signals are positive. Conversely, prices are falling when signals are negative. As an advance rises, the Rate Of Change signal should also rise higher, otherwise the rally is suspect. A decline should see the Rate Of Change fall into negative signals. The more negative the signals the stronger the decline. |
Stock Market Outlook: Support and Resistance Levels |
| 6400 is resistance |
| 6390 is resistance |
| 6365 is resistance |
| 6350 is resistance |
| 6325 is resistance |
| 6300 is resistance |
| 6250 is resistance |
| 6225 is resistance |
| 6200 is resistance |
| 6175 is resistance |
| 6150 is resistance |
| 6125 is resistance |
| 6100 is support |
| 6075 is support |
| 6050 is support |
| 6025 is support |
| 6000 is support |
| 5990 is support |
| 5975 is support |
| 5950 is support |
| 5925 is support |
| 5900 is support |
Stock Market Outlook for Wed Aug 6 2025
For Wed Aug 6 2025 the technical indicators are primarily negative on the outlook. Momentum however is still in the bulls favor and that could keep the rally on track. Overall though the outlook is for a choppy day of trading and a lower close.
Potential Economic and Political Market Moving Events
Monday:
10:00 Factory orders came in at -4.8% slightly better than estimates.
Tuesday:
8:30 Trade deficit came in at -$60.2 billion, a larger decrease than estimated
9:45 S&P final services PMI was above estimates at 55.7
10:00 ISM services were lower than estimated at 50.1%
Wednesday:
No economic reports