On Tuesday, the market was poised for a bounce as it sat extremely oversold. The catalyst was comments from Fed Chair Powell who repeated earlier comments about being ready to keep the economic expansion from contracting. Investors took these comments to mean a Fed rate cut was on the agenda and indeed many analysts predicted that later this month investors would see a rate cut. That was all the market needed to shoot higher. It was a dramatic day ending with the second best rally of the year and the S&P back above 2800.
Stock Market Outlook Chart Comments At The Close on Tue Jun 4 2019
On Tuesday the index retook the 200 day moving average and closed just below the 100 day and at the 2800 level. The candlestick at the close was bullish for Wednesday.
The Lower Bollinger Band turned sideways by the close although the Upper Bollinger Band continued its decline.
It was the first time in over two weeks that a bullish signal entered the index. The rally recovered almost 2% of the losses from the correction.
Stock Market Outlook review of Tue Jun 4 2019
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is negative and rising.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Wednesday May 1. On Tuesday the down signal was weaker.
- 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 signal rose sharply.
- 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 signal is pointing up for stocks and is still showing extremely oversold which indicates the rally should continue Wednesday.
- 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 also rose dramatically.
- 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 back rising indicating higher prices lie ahead.
- 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 Resistance Levels To Be Aware Of:
2950 is resistance
2900 is resistance
2860 is light resistance
2830 is light resistance
2800 is strong support
2795 is light support
2745 to 2750 is light support
2725 is light support
2700 is light support
2675 is light support
2650 is support
2625 is light support
2600 is support.
There was good support at the 2550 level which is back to being support.
The 2500 level is support.
The S&P has light support at 2480 and better support at 2450.
There is good support at 2425.
Below that there is some support at 2400, 2380, 2350.
Stock Market Outlook for Tomorrow – Wed Jun 5 2019
For Wednesday all the technical indicators are pointing to the bounce from Tuesday as continuing.
We will see dips below 2800 probably in the morning, but any dip will be bought, especially by investors who missed Tuesday’s big rally.
Wednesday will be choppy with dips but a higher close will end the day.
Stock Market Outlook Archives
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Morning Investing Strategy Notes for Tue May 5 2026
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Morning Investing Strategy Notes for Mon May 4 2026
Stock Market Outlook For Mon May 4 2026 – Dips Likely With Possible Lower Close
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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
Morning Investing Strategy Notes for Tue Apr 28 2026
