Prior Trading Day Summary:
On Tuesday stocks attempted to continue Monday’s rally but failed. Two strong morning rally attempts reached above e 5580 but with a lack of buying interest above that valuation, stocks slipped. The final half hour saw the SPX turn negative with the SPX ending the day down8 points to 5555 and the NASDAQ down 10 points to 17,997.
Down volume managed to edge out up volume on both exchanges with 52% of all trades on the SPX lower and 51% on the NASDAQ lower.
None of the action on Monday managed to change the technical indicators general outlook.
Let review the closing technical indicators from Tue Jul 23 2024 to see what the signals are for Wed Jul 24 2024.
Stock Market Outlook: SPX Closing Chart For Tue Jul 23 2024
The index closed at the 21 day moving average but well below the Upper Bollinger Band. This is bearish and signals that Monday’s bounce may end up being just a bounce.
The closing candlestick indicates the index sellers pushed back buyers into the close. Often a small spike could star the day on Wednesday followed by further dips.
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 5038 which is bullish and the 100 day is also climbing to 5283.
The Lower Bollinger Band fell just below the 50 day moving average Wednesday July 17 which is bearish but it has not fallen further which often indicates the down move may be over. The Upper Bollinger Band is turned sideways which is bearish.
The S&P chart is more bearish short-term than bullish. There is more than one signal advising stocks still have room to fall.
SPX Stock Market Outlook review of Tue Jul 23 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising but negative.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thur July 18. On Tue Jul 23 2024 the down signal gained strength.
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Ultimate Oscillator: The Ultimate Oscillator is falling and negative.
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Slow Stochastic: The Slow Stochastic has a down signal in place.
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Relative Strength Index: The RSI signal is falling and negative.
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Rate of Change: The rate of change signal is unchanged signaling that Wednesday will have some weakness but could end the day only slightly lower.
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Stock Market Outlook: Support and Resistance Levels |
| 5675 is resistance |
| 5650 is resistance |
| 5630 is resistance |
| 5600 is resistance |
| 5575 is resistance |
| 5550 is resistance |
| 5520 is resistance |
| 5500 is resistance |
| 5490 is resistance |
| 5475 is resistance |
| 5465 is support |
| 5450 is support |
| 5425 is support |
| 5400 is support |
| 5375 is support |
| 5350 is support |
| 5325 is support |
| 5310 is support |
| 5300 is support |
Stock Market Outlook for Wed Jul 24 2024
Tuesday’s lack of a follow through from Monday’s rally, has setup Wednesday for a potential flat to lower day as weakness looks set to continue according to the technical indicators. There were some good quarterly earnings results from Alphabet Stock (GOOGL), Texas Instruments Stock (TXN), Seagate Stock (STX) and others which could help to support a potential higher open. Tesla Stock (TSLA) may dip on earnings that were uninspiring.
On Wednesday investors get the latest PMI numbers and that could impact stocks as well.
Potential Economic and Political Market Moving Events
Monday:
No reports
Tuesday:
10:00 Existing home sales weree expected to fall to 3.95 million but fell to 3.89 million, lower than estimated
Wednesday:
8:30 Advanced trade balance in good
8:30 Advanced retail inventories
8:30 Advanced wholesale inventories
9:45 S&P flash services PMI is estimated to be 55.0
9:45 S&P flash manufacturing PMI is estimated to be 51.5
10:00 New home sales are expected to rise to 640,000