Stock markets took the bad news from Target in stride and that’s a sign the index wants to still move higher. Target stock fell to $147.50 but closed at $155.98 down just 2.3% on the day.
The early morning dip below 4100 was quickly snapped up by investors. The day ended up 39 points for the SPX closing at 4160 the highs of the day.
The NASDAQ closed up 113 points to end the day at 12,175.
Let’s review the closing technical indicators from Tuesday to see if stocks will try to continue the bounce into Wednesday.
Stock Market Outlook Chart Comments At The Close on Tue Jun 7 2022
On Tuesday the closing candlestick is bullish but also shows the index closing at the high on Tuesday which often signals some dips to be expected on Wednesday.
The Bollinger Bands Squeeze has stalled out with the Upper Bollinger Band moving sideways and the Lower Bollinger Band falling. This is bullish.
There is a trend change notification from the 21 day moving average which is turning higher. This is bullish.
The 200, 100 and 50 day moving averages are all falling lower and the 200 day is leading the market. This is bearish.
There are 4 down signals still in place.
The chart is 70% bearish for Wednesday. Continue keeping an eye on the 21 day moving average. Any close below it by the SPX will be a negative signal.
Stock Market Outlook review of Tue Jun 7 2022
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is falling and still 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 Wed May 25 2022. On Tuesday MACD was unchanged from Monday. The MACD histogram also unchanged.
- 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 rising.
- 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 neutral signal in place and is 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 rising and finally turned positive. This is the first positive signal since April 13.
- 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:
4400 is resistance
4370 is light support
4350 is light resistance
4300 is light resistance
4290 is light resistance
4270 is light resistance
4250 is resistance
4225 is light resistance
4200 is light resistance
4150 is light support
4100 is light support
4050 is light support
4025 is light support
4000 is good support
3975 is light support and is a decline of 17.5%
3900 is good support and is a decline of 19%
3850 is good support and is a decline of 20%
3600 is good support at is a decline of 25%
Stock Market Outlook for Tomorrow – Wed Jun 8 2022
For Wednesday the technical indicators are more mixed but there are some important signals to the upside. In particular the Rate Of Change has finally turned positive for the first time since April 13. If you look at the chart you can see that the Rate Of Change fell lower throughout April and part of May but has been rising since late May. This is the best bullish signal since April.
Wednesday will see some weakness but dips will be opportunities to setup trades. The close will be higher.
Potential Market Moving Events
This week the primary events that could see markets shift are on Friday.
Tuesday:
8:30: Foreign Trade balance came in at negative $87.1 billion slightly better than the anticipated negative $90.3 billion.
Wednesday:
10:00 Wholesale Inventories revision
Thursday:
8:30 Initial jobless claims
8:30 Continuing jobless claims
Friday:
8:30 Monthly Consumer Price Index
8:30 Core CPI
8:30 CPI year-over-year
8:30 Core CPI year-over-year
10:00 5 Year Inflation expectations
Stock Market Outlook Archives
Stock Market Outlook For Wed May 6 2026 – Choppy But Higher Still
Morning Investing Strategy Notes for Tue May 5 2026
Stock Market Outlook For Tue May 5 2026 – Overbought and Lower
Morning Investing Strategy Notes for Mon May 4 2026
Stock Market Outlook For Mon May 4 2026 – Dips Likely With Possible Lower Close
Morning Investing Strategy Notes for Fri May 1 2026
Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
Morning Investing Strategy Notes for Thu Apr 30 2026
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
