Stock Market Outlook for Wed Jan 2 2019 – Down

Stock Market Outlook Down

On Monday, New Year’s Eve, the stock market indexes, rose and closed positive but with 6 sell signals the market will need more time to build a base for a better rally. What we have seen is a bounce that needs more time to build trust for the index to be able to maintain a climb. On Monday the market traded on light volume and in a tight trading range. This left behind a bearish candlestick for Wednesday.

As well, economic data out of China shows a slow down in manufacturing thanks in large part to the ongoing dispute with the United States. That will weigh on markets around the world which will setup the North American markets for a down day on Wednesday.

No further market statistics are needed for Wednesday’s outlook.






Support Resistance Levels To Be Aware Of:

2900 was support – this will be strong resistance

2860 was support – this will be resistance

2830 was light support and will be light resistance

2800 is strong resistance

2795 is light resistance

2745 to 2750 is light resistance

2725 is light resistance

2700 is resistance

2675 is light resistance

2650 is light resistance

2620 is light resistance

2600 is strong resistance.

There was good support at the 2550 level from where the market originally bounced. Despite falling 200 points lower to the 2350 level, the 2550 level still has support for the market if it can recover this high by this week, otherwise it will become resistance as investors will want out of their positions should the market have trouble climbing.

The S&P has light support at 2480, right near where it closed on Friday.

It also has light support at 2450 and good support at 2425. Below that there is some support at 2400 and 2380.

Better support is at 2350.

2300 has the most support at present but would represent a full correction of 641 points as a drop to this level would be 21% and just 5% away from a bear market signal ending the bull market from 2009.


 Stock Market Outlook for Tomorrow – Wed Jan 2 2019 

The outlook is lower for Wed Jan 2 2019. The S&P needs to hold the 2400 level, otherwise it will once again fall quickly to the 2350 level.

High volatility will mark trading on Wednesday.


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