Prior Trading Day Summary:
On Tue Feb 27 stocks once again traded primarily sideways but this time there was a strong bullish bias. Volume rose to 4 billion shares with 68% of all volume being traded to the upside. The SPX ended the day up 8 points at 5078.
The NASDAQ ended the day up 59 points to close at 16,035. Trading volume was steady at 5.5 billion shares with 72% of all svolume trading higher.
Let’s review Tuesday’s closing technical indicators to see what we should expect forWed Feb 28 2024.
Stock Market Outlook: SPX Closing Chart For Tue Feb 27 2024
The index closed just below the Upper Bollinger Band on Tuesday. This is bullish.
The closing candlestick is bullish for Wednesday.
The 21 day moving average is moving higher which is bullish. It is at 4975 on the SPX.
The 50 day moving average is rising and at 4850 which is bullish.
The 100 and 200 day moving averages are climbing which is bullish. The 200 day is at 4530 on the SPX which is bullish.
The Bollinger Bands are still in a Bollinger Bands Squeeze and appear to be signaling a move higher out of the squeeze.
The S&P chart is more bullish than bearish for Wed Feb 28 2024.
Stock Market Outlook review of Tue Feb 27 2024
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 Fri Feb 16 2024. On Fri Feb 23 2024 a new unconfirmed up signal was generated. On Tuesday the up signal was still not confirmed.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive.
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Slow Stochastic: The Slow Stochastic has a down signal in place and is overbought.
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Relative Strength Index: The RSI signal is rising and positive. It is slightly overbought.
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Rate of Change: The rate of change signal is rising and signaling a slightly higher close is likely for Wednesday.
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Stock Market Outlook: Support and Resistance Levels |
| 5100 is resistance |
| 5090 is resistance |
| 5075 is resistance |
| 5050 is resistance |
| 5025 is resistance |
| 5010 is resistance |
| 5000 is resistance |
| 4990 is resistance |
| 4975 is resistance |
| 4950 is resistance |
| 4925 is resistance |
| 4915 is resistance |
| 4900 is support |
| 4875 is support |
| 4850 is support |
| 4825 is support |
| 4815 is support |
| 4800 is support |
| 4780 is support |
| 4750 is support |
Stock Market Outlook for Wed Feb 28 2024
For Wednesday the technical indicators are still showing some selling pressure but the bullish sentiment remains fairly solid. The day looks like another sideways day although the retail and wholesale inventory numbers before the open may weigh on some investors. The bigger inflation number os Thursday when we get the PCE numbers and six Fed officials are speaking throughout the day. We may see a bigger move tomorrow for the indexes. For today indexes are still on pace for more dips and choppy trading but a higher close.
Potential Economic and Political Market Moving Events
This is a busy week for reports including durable goods order on Tuesday, retail and wholesale inventories on Wednesday, PCE on Thursday and manufacturing on Friday.
Monday:
10:00 New home sales are expected to dip but instead they rose by 10,000 to 661,000
Tuesday:
8:30 Durable goods orders were expected to drop to -5.0% from 0.0% but fell -6.1% showing weakness in the economy may be developing.
9:00 Case-Shiller home price index wasexpected to be unchanged but instead rose to 6.1%
10:00 Consumer confidence for February was expected to rise to 115 from 114.8 but instead fell to 106.7
Wednesday:
8:30 GDP revision is expected at 3.3%
8:30 Advanced retail inventories is expected at 0.4%
8:30 Advanced whole inventories is expected at 0.7%