Prior Trading Day Summary:
On Tue Feb 18 2025 stock indexes traded in a tight range until the last 10 minutes when the SPX shot higher moving from 6112 to close at 6129, up 15 points, all of it in the final minutes of the trading day. The NASDAQ rose 14 points to close at 20041. The SPX was at another new intraday high on Tuesday. 4.8 billion shares were traded with 67% of the volume advancing. The NASDAQ saw 9 billion shares trade hands with 70% of the volume, advancing.
Let’s review the technical indicators from Tue Feb 18 2025 to see what to expect for Wed Feb 19 2025.
Stock Market Outlook: SPX Closing Chart For Tue Feb 18 2025
The index closed above all moving averages and at the Upper Bollinger Band. This is very bullish.
The closing candlestick is signaling a possible dip in the morning on Wednesday but a higher close.
The 21 day moving average is rising and closed at 6063 which is bullish.
The 50 day moving average is rising and closed at 6009 which is bullish.
The 100 day moving average is rising and closed at 5905 which is bullish.
The 200 day moving average is rising and closed at 5681 which is bullish.
The Lower Bollinger Band is rising which is bullish. The Upper Bollinger Band is trending sideways. A Bollinger Bands Squeeze is underway to start the week. There is a good chance the squeeze will end with stocks climbing.
For Wednesday the SPX chart is bullish.
SPX Stock Market Outlook review of Tue Feb 18 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 an up signal on Fri Jan 17 2025. The up signal gained strength on Tue Feb 18 2025.
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Ultimate Oscillator: The Ultimate Oscillator is rising sharply and into overbought readings.
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Slow Stochastic: The Slow Stochastic has an up signal in place and overbought.
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Relative Strength Index: The RSI signal is rising and overbought.
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Rate of Change: The rate of change signal is rising, signaling Wednesday will end higher.
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Stock Market Outlook: Support and Resistance Levels |
| 6125 is resistance |
| 6100 is strong resistance |
| 6090 is resistance |
| 6070 is resistance |
| 6050 is resistance |
| 6025 is resistance |
| 6015 is resistance |
| 6000 is resistance |
| 5990 is support |
| 5970 is support |
| 5950 is support |
| 5900 is support |
| 5890 is support |
| 5875 is support |
| 5850 is support |
| 5830 is support |
| 5800 is support |
Stock Market Outlook for Wed Feb 19 2025
For Wednesday the technical signals are strongly bullish. The majority of indicators are signaling overbought. We could see a dip as so many stocks are entering overbought levels and Toll Brothers earnings disappointed on Tuesday after the close. With home builders under pressure the morning could be weak, but there is still room for the index to move higher. Another positive close is expected for Wednesday.
Potential Economic and Political Market Moving Events
Monday:
No events
Tuesday:
8:30 Empire State manufacturing survey was much higher than estimated at 5.7
10:00 Home builder confidence index fell more than expected to 42
Wednesday:
8:30 Housing starts for Jan are estimated at 1.4 million, down 100,000
8:30 Building permits are expected to fall by 200,000 to 1.46 million
2:00 Minutes of Fed January FOMC meeting are not expected to make any difference to market direction today