Prior Trading Day Summary:
Tuesday saw stocks tumble as investors decided to take profits from the recent rally. Economic reports on Tuesday did not favor the Fed cutting interest rates in May or probably even June. That also weighed on investors.
The S&P lost 80 points, the worst day since April 12 when the index lost 84 points.
The NASDAQ ended down 325 points, the worst day since January 31 when the NASDAQ lost 345 points.
Let’s review the closing technical indicators from Tue Apr 30 2024 to see what investors should expect on Wed May 1 2024 to start off May.
Stock Market Outlook: SPX Closing Chart For Tue Apr 30 2024
The index closed below the 21 and 50 day moving averages.
The closing candlestick is signaling bearish for Wednesday with the possibility of a small bounce.
The 21 day moving average is falling sharply and is below the 50 day moving average. This is a major down signal.
The 50 day moving average is moving lower which is bearish.
The 200 day moving average is still climbing. The 200 day is at 4753 which is bullish and the 100 day is also climbing.
The Lower Bollinger Band is now turning lower as is the Upper Bollinger Band. Both are bearish.
The S&P chart is overwhelming bearish for Wednesday.
SPX Stock Market Outlook review of Tue Apr 30 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Tue Apr 2. On Tue Apr 30 2024 the down signal gained further strength.
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Ultimate Oscillator: The Ultimate Oscillator is falling. It is signaling a lower day on Wednesday.
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Slow Stochastic: The Slow Stochastic has a weak up 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 falling signaling a lower day for Wednesday.
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Stock Market Outlook: Support and Resistance Levels |
| 5275 is resistance |
| 5250 is resistance |
| 5225 is resistance |
| 5200 is resistance |
| 5190 is resistance |
| 5175 is resistance |
| 5150 is resistance |
| 5125 is resistance |
| 5115 is resistance |
| 5100 is resistance |
| 5075 is resistance |
| 5050 is support |
| 5025 is support |
| 5000 is light support |
| 4990 is light support |
| 4975 is light support |
| 4950 is support |
Stock Market Outlook for Wed May 1 2024
For Wednesday the technical indicators have shifted back to down following Tuesday’s sell-off. They indicate that even if there is a bounce on Wednesday, which is expected, stocks will still move lower.
Today we get the latest FOMC interest rate decision which is followed by the news conference. This can be one of the more volatile events for the markets. The outlook is negative for Thursday with a lower close expected.
Potential Economic and Political Market Moving Events
The main events this week are the Fed’s decision on interest rates on Wednesday followed by the April employment report on Friday.
Monday:
No reports of significance. This usually favors the bulls.
Tuesday:
9:00 S&P Case-Shiller home price index was expected to rise slightly to 6.7% from 6.6% but rose to 7.3% which helped send stocks lower.
10:00 Consumer confidence was expected to dip slightly to 103.5 from 104.7 but fell to 97 which also sent stocks lower.
Wednesday:
8:15 ADP employment is expected at 183,000
10:00 Construction spending is expected to rise 0.3%
10:00 ISM Manufacturing is expected to report 49.9%
10:00 Job openings are estimated at 8.7 million
2:00 FOMC interest rate decision
2:30 Fed Chair Powell news conference
Intraday – auto sales