Prior Trading Day Summary:
On Tuesday the S&P closed higher once again and on average volume of 3.3 billion shares. The number of stocks falling though was high at 54% and 56% of all volume was moving lower. The index closed up 4 points at 5577.
The NASDAQ also rose, climbing 25 points to end the day at 18,429, also a new closing high. However only 40% of all stocks were climbing and 45% of all volume was to the downside.
The trading action on Tuesday was more bearish than bullish.
Let’s review the technical indicators from the close on Tue Jul 9 2024 to see what to expect on Wed Jul 10 2024.
Stock Market Outlook: SPX Closing Chart For Tue Jul 9 2024
The index closed above the 21 day moving average and at the Upper Bollinger Band, at a new high. This is bullish.
The closing candlestick though indicates the index is very overbought and will dip on Wednesday.
The 21 day moving average is still climbing continuing the latest up signal.
The 50 day moving average is climbing which is bullish.
The 200 day moving average is still climbing. The 200 day is at 4980 which is bullish and the 100 day is also climbing to 5216.
The Lower Bollinger Band moved higher above the 50 day moving average which is bullish. The Upper Bollinger Band isclimbing which is also bullish.
The S&P chart is more bullish than bearish for Wednesday.
SPX Stock Market Outlook review of Tue Jul 9 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 an up signal on Friday July 5. On Tue Jul 9 2024 the up signal gained strength.
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Ultimate Oscillator: The Ultimate Oscillator is falling and positive. It is overbought.
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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 overbought.
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Rate of Change: The rate of change signal is falling signaling that Wednesday will end lower.
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Stock Market Outlook: Support and Resistance Levels |
| 5600 is resistance |
| 5575 is resistance |
| 5550 is resistance |
| 5520 is resistance |
| 5500 is resistance |
| 5490 is resistance |
| 5475 is resistance |
| 5465 is resistance |
| 5450 is resistance |
| 5425 is resistance |
| 5400 is support |
| 5375 is support |
| 5350 is support |
| 5325 is support |
| 5310 is support |
| 5300 is support |
| 5275 is support |
| 5250 is light support |
| 5225 is light support |
Stock Market Outlook for Wed Jul 10 2024
For Wednesday the technical indicators remain bullish with just a couple of indicators pointing to a lower day today. The closing candlestick on Monday also signaled a lower day is expected.
Today watch for dips. Some could be a bit deeper than expected but are primarily opportunities to setup trades for a bounce.
Many investors are on hold waiting for bank earnings to be released later this week. If bank earnings surprise to the upside, stocks will move higher.
Potential Economic and Political Market Moving Events
The biggest economic events this week are Fed Chair Powell’s House testimony on Wednesday, CPI numbers on Thursday and PPI numbers of Friday.
Monday:
3:00 Consumer credit was expected to come in at $8 billion, but came in at $11.4 billion which shows strength from consumers.
Tuesday:
6:00 NFIB optimism index which is expected to remain flat at 90.3 came in higher at 91.5
10:00 Fed Chair Powell testifies to congress
Wednesday:
10: Wholesale inventories are estimated at 0.6%