Prior Trading Day Summary
On Tue Jan 6 2026 stocks continued the advance with the SPX closing at a new all-time high.
The S&P closed up 42 points to 6944 on 5.6 billion shares traded. 63% of all stocks were rising.
The NASDAQ rose 151 points to close at 23,547. Volume was 9.2 billion shares traded with 60% of stocks rising by the close.
Let’s review the closing technical indicators from Jan 6 2026 to see what to expect on Wed Jan 7 2026.
Stock Market Outlook: SPX Closing Chart For Tue Jan 6 2026
The index closed just below the Upper Bollinger Band and above all major moving averages. This is bullish.
The closing candlestick is bullish but also signals some stocks are becoming overbought.
The 21 day moving average is rising and closed at 6863. This is bullish.
The 50 day moving average is rising and closed at 6813. This is bullish.
The 100 day moving average is rising and closed at 6671 which is bullish.
The 200 day moving average is rising and closed at 6426 which is bullish.
The Lower Bollinger Band is falling which is bullish. The Upper Bollinger Band is rising which is bullish. The Bollinger Bands Squeeze is starting to end and the outlook is for the index to move still higher.
The SPX chart is more bullish than bearish with some stocks becoming overbought.
SPX Stock Market Outlook review of Tue Jan 6 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive. This is bullish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Dec 23 2025. On Tue Jan 6 2026 the up signal returned.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is entering overbought readings.
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Relative Strength Index: The RSI signal is rising and into overbought readings.
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| Rate of Change: The rate of change is rising and signaling a higher close for Wednesday. Settings: Rate Of Change is set for a 21 period. This indicator looks back 21 days and compares price action from the past to the present. With the Rate Of Change, prices are rising when signals are positive. Conversely, prices are falling when signals are negative. As an advance rises, the Rate Of Change signal should also rise higher, otherwise the rally is suspect. A decline should see the Rate Of Change fall into negative signals. The more negative the signals the stronger the decline. |
Stock Market Outlook: Support and Resistance Levels |
| 7000 is resistance |
| 6950 is resistance |
| 6925 is resistance |
| 6900 is resistance |
| 6875 is resistance |
| 6850 is resistance |
| 6800 is resistance |
| 6775 is resistance |
| 6750 is resistance |
| 6715 is resistance |
| 6700 is resistance |
| 6675 is support |
| 6650 is support |
| 6625 is support |
| 6600 is support |
| 6590 is support |
| 6570 is support |
| 6550 is support |
| 6500 is support |
Stock Market Outlook for Wed Jan 7 2026
For Wednesday signals are more bullish. The MACD technical indicator turned back to up without confirming the down signal it issued on Friday. Two of the technical indicators are showing overbought readings but there is still room for the index to move higher.
Expect a higher close on Wednesday. Friday we get the December non-farm payroll numbers and latest unemployment rate.
Potential Economic and Political Market Moving Events
Monday:
10:00 ISM Manufacturing index for Dec came in lower than estimated at 47.9%. Anything below 50% is considered a signal of contraction.
Through the day we get auto sales
Tuesday:
9:45 S&P final services PMI for Dec was higher than estimated at 52.5, down only slightly from the 52.9 prior.
Wednesday:
8:15 ADP employment for December is estimated to rise to 48,000
10:00 ISM services index for December is estimated to slip to 52.2% down from $52.6% prior
10:00 Job openings are estimated at 7.6 million down from 7.7 million prior
10:00 Factory orders are estimated to have fallen to -1.2% in October from 0.2% prior