Prior Trading Day Summary:
Tuesday’s rally was stronger than expected with the SPX rallying 52 points ending the day above 6000 at 6049. Volume rose 400 million shares to 4.8 billion with 74% of volume advancing and 79% of all stocks rising. There were 152 new highs and just 17 new lows as the rally gained strength.
The NASDAQ struggles as Apple STock’s decline of over 3% weighed on the index. 8.3 billion shares traded with 63% of all volume rising and 67% of all stocks advancing. The index gained 126 points to end the day at 19,756. The index looks positioned to move above 20,000 this week.
With excellent earnings from Netflix, United Airlines Stock (UAL) and others on Tuesday after the close, the index looks strong for Wednesday.
Let’s review the technical indicators at the close on Tue Jan 21 2025 to see what to expect for Wed Jan 22 2025.
Stock Market Outlook: SPX Closing Chart For Tue Jan 21 2025
The index closed above all major moving averages and at the Upper Bollinger Band which is bullish.
The closing candlestick shows the index as overbought but still room to move higher. The candlestick is bullish.
The 21 day moving average remained unchanged at 5930 which is bearish. It fell below the 50 day moving average Monday Jan 13 which is a down signal but it is starting to move up.
The 50 day moving average is rising and closed at 5973 which is bullish.
The 100 day moving average is rising and closed at 5829 hich is bullish.
The 200 day moving average is rising and closed at 5599 which is bullish.
The Lower Bollinger Band is rising which is bullish. The Upper Bollinger Band has changed to sideways which is neutral.
For Wednesday, the SPX chart is more bullish than bearish.
SPX Stock Market Outlook review of Tue Jan 21 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 was confirmed Tue Jan 21 2025.
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Ultimate Oscillator: The Ultimate Oscillator is unchanged.
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Slow Stochastic: The Slow Stochastic has an up signal in place and entering overbought readings.
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Relative Strength Index: The RSI signal is rising and at overbought levels.
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Rate of Change: The rate of change signal is rising and signaling Wednesday will end higher.
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Stock Market Outlook: Support and Resistance Levels |
| 6100 is strong resistance |
| 6090 is resistance |
| 6070 is resistance |
| 6050 is resistance |
| 6025 is resistance |
| 6015 is resistance |
| 6000 is resistance |
| 5990 is resistance |
| 5970 is resistance |
| 5950 is support |
| 5900 is support |
| 5890 is support |
| 5875 is support |
| 5850 is support |
| 5830 is support |
| 5800 is support |
| 5780 is support |
| 5725 is support |
| 5700 is support |
Stock Market Outlook for Wed Jan 22 2025
For Wed Jan 22 2025 the index is overbought but with room to still move higher. The Moving Average Convergence / Divergence (MACD) technical indicator confirmed the up signal from Friday.
With strong earnings from a number of companies on Tuesday, particularly Netflix Stock (NFLX) and United Airlines Stock (UAL), the index will end the day higher.
Any dips on Wednesday are opportunities to setup trades as the outlook is higher for stocks.
Potential Economic and Political Market Moving Events
Monday:
Martin Luther King Jr Day
Tuesday:
No event scheduled
Wednesday:
10:00 Leading economic indicators are estimated to fall to -0.1% versus 0.3% prior