Prior Trading Day Summary:
On Tuesday stocks continued their advance despite already being overbought.
Volumes remained above average on Tuesday with the S&P traded 4.1 billion shares and closing up 27 points to 4,768.
The NASDAQ traded 5.9 billion shares and closed up 98 points and ended the day above 15,000 at 15,003.
The number of new 52 week lows has plunged as investors are now dumping capital into just about every stock in an effort to join the rally.
Let’s review the closing technical indicators from Tue Dec 19 2023 to see what to expect for Wed Dec 20 2023.
Stock Market Outlook: SPX Closing Chart For Tue Dec 19 2023
The index closed above all major moving averages and above the Upper Bollinger Band. This is bullish.
The 21 day moving average is rising further, which is also bullish. It reached SPX 4600 on Monday and is still advancing.
The closing candlestick is bullish for Wednesday but also signaling stocks are overbought. The index could stall at any time.
The 50 day moving average is above the 100 day.
The 100 and 200 day moving averages are climbing which is bullish.
The Lower Bollinger Band is turning lower and the Upper Bollinger Band is turning higher, signaling the Bollinger Bands Squeeze is ending.
The S&P chart is continuing bullish.
Stock Market Outlook review of Tue Dec 19 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 an up signal on Thu Nov 2. On Tue Dec 19 2023 the up signal gained strength.
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Ultimate Oscillator: The Ultimate Oscillator is falling and positive. It is signaling overbought.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is positive. It is also into overbought readings.
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Relative Strength Index: The RSI signal is rising and positive. It is very overbought.
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Rate of Change: The rate of change signal is rising and positive. It is signaling that we could see a move higher on Wednesday.
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Stock Market Outlook: Support and Resistance Levels |
| 4800 is resistance |
| 4780 is resistance |
| 4750 is resistance |
| 4720 is resistance |
| 4700 is resistance |
| 4675 is resistance |
| 4650 is support |
| 4625 is support |
| 4600 is support |
| 4590 is support |
| 4575 is light support |
| 4565 is light support |
| 4550 is support |
| 4535 is support |
| 4520 is support |
| 4500 is support |
| 4475 is support |
| 4450 is support |
Stock Market Outlook for Wed Dec 20 2023
For Wednesday the technical indicators are still pointing higher and remain bullish. They are also signaling that stocks are overbought and due for a dip. That dip could happen at any time but with so many investors trying to get into the rally, any dips could be shallow and quickly bought.
For Wednesday the outlook remains higher for the index.
Potential Economic and Political Market Moving Events
Major economic events this week are Housing starts on Tuesday, GDP (revised) on Thursday and durable goods orders on Friday. This week is light on economic data which often assists the bulls in pushing stocks higher.
Monday:
Home builder confidence is expected to come in higher at 36 from last month’s 34 but came in at 37
Tuesday:
8:30 Housing starts are expected to be 1.36 million but came in much higher at 1.56 million.
8:30 Building permits are expect to be 1.48 million but came in at 1.46 billion.
Wednesday:
8:30 Current Amount for third quarter is expected to rise to -197.5 billion.
10:00 Existing home sales is expected to dip to 3.6 billion.
10:00 Consumer confidence is estimated to rise to 104.5