Tuesday saw the S&P jump at the open, coming within 4 points of its all-time record high but then just as we saw on Friday, the index slipped lower to close almost flat on the day with a small loss of 2 points. The index closed at 4202.
However despite the dip, the MACD technical indicator confirmed the up signal from Friday. Here are the closing technical readings from Tue Jun 1 2021.
Stock Market Outlook Chart Comments At The Close on Tue Jun 1 2021
The SPX at the open hit the Upper Bollinger Band. That’s bullish for Wednesday.
The Lower Bollinger Band dipped on Tuesday which is also bullish.
The S&P stayed above the 21 day moving average and ended above it for the sixth day on Tuesday. This left behind a bullish candlestick for Wednesday.
The 21 day moving average is moving almost unchanged while the 50, 100 and 200 day moving averages are still climbing.
The chart is still mixed with but a lot of the bullish signals from Friday were gone by the close on Tuesday.
Stock Market Outlook – review of Tue Jun 1 2021
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is unchanged and positive.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Friday May 28 2021. On Tuesday that up signal was confirmed.
- Settings: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9.
Ultimate Oscillator: The Ultimate Oscillator is falling.
- Settings: The Ultimate Oscillator settings are: Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months.
Slow Stochastic: The Slow Stochastic has an up signal in place for Wednesday and is now overbought.
Settings: For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic tries to predict the market direction further out than just one day.
Relative Strength Index: The RSI signal is falling slightly.
- Settings: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It is often the first indicator to show an overbought or oversold signal.
Rate of Change: The rate of change signal is rising.
- 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.
Support and Resistance Levels To Be Aware Of:
4250 is resistance
4225 is resistance
4200 is resistance
4150 is light support
4100 is light support
4070 is very light support
4050 is light support and where the 50 day is currently residing. This would represent a 4.4% decline.
4000 is good support
3900 is support and just below the 100 day moving average.
3850 is support
3800 is support
3750 is good support
3700 is light support and just below the 200 day moving average.
3680 is light support
3600 is strong support
Stock Market Outlook for Tomorrow – Wed Jun 2 2021
For Wednesday the technical signals are mixed but most important, the MACD up signal was confirmed at the close of trading on Tuesday.
As well the Slow Stochastic still has an up signal in place despite becoming oversold. Last, the Rate Of Change indicator turned back to up which indicates prices may move slightly higher on Wednesday.
What would be preferred for Wednesday is a flat to slightly weak opening. If the index does opens flat to lower, we could see the S&P move higher intraday and end the day higher. Whatever happens on Wednesday however, the signals are advising that more upside lies ahead this week for the index but it will be choppy trading.
Stock Market Outlook Archives
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Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
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Stock Market Outlook For Thu Apr 30 2026 – Dips Likely Possible Lower Close
Morning Investing Strategy Notes for Wed Apr 29 2026
Stock Market Outlook For Wed Apr 29 2026 – Choppy But Higher Ahead Of More Earnings
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