Tuesday saw the index make a historic move to 4300 mid-morning. The rest of the day the index slipped but still managed to close up 1 point to 4291.
Volume was lower on Tuesday leaving behind a flat close. Let’s review Tuesday’s closing numbers to see what to expect for Wednesday.
Stock Market Outlook Chart Comments At The Close on Tue Jun 29 2021
The S&P closed once again at the Upper Bollinger Band which is pressuring the Upper Bollinger Band to rise. The Lower Bollinger Band is falling which is ending the most recent Bollinger Bands Squeeze.
The closing candlestick on Tuesday is again bearish for Wednesday.
The 21, 50, 100 and 200 day moving averages are climbing. The 21 day moving average is climbing further above the 50 day. These are all bullish signals.
At the close on Monday there is only the candlestick that is bearish. The rest of the chart is bullish.
Stock Market Outlook review of Tue Jun 29 2021
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is rising slightly 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 June 25. That up signal was stronger on Tuesday.
- 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 for a second day.
- 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 a weak up signal in place and is signaling 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 rising.
- 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 falling.
- 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:
4300 is resistance
4290 is resistance
4270 is resistance
4250 is resistance
4225 is light support
4200 is light support and where the 50 day moving average rests
4175 is light support
4150 is light support
4100 is light support
4070 is very light support
4050 is light support and just below the 100 day moving average rests
4000 is good support
3900 is support
3850 is support and just below the 200 day moving average
3800 is support
3750 is good support
3700 is light support
3680 is light support
3600 is strong support
Stock Market Outlook for Tomorrow – Wed Jun 30 2021
For Wednesday we will see another attempt to move back to 4300 but dips will be deeper again, as we saw on Tuesday.
The outlook though is still bullish, but there are growing signs of the market being overbought and a down day is possible on Wednesday although as the final day of June, we normally expect a higher close.
If Wednesday is lower, Thursday will be higher ahead of the release of June’s unemployment report on Friday.
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
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