Prior Trading Day Summary
On Tue May 12 2026 indexes closed lower but well off the early lows of the day.
The S&P lost just shy of 12 points to close at 7400. Volume fell to 5.7 billion. By the close 59% of all stocks were moving lower, matching Monday’s number of falling stocks.
The NASDAQ fell 186 points, its worst one day loss since Apr 28. It closed at 26,088. Volume was lower at 10 billion but still slightly above average. By the close 61% of all stocks were falling.
The higher than expected inflation numbers were the primary culprit behind the sell-off, but many investors used this reason to take profits, which is common in a rising market.
Let’s review the closing technical indicators from Tue May 12 2026 to see what they predict for Wed May 13 2026.
Stock Market Outlook: SPX Closing Chart For Tue May 12 2026
The index closed above all major moving averages and at the Upper Bollinger Band. This is bullish.
The closing candlestick is bearish for Wednesday with a long shadow which often indicates a major move up or down is coming.
The 21 day moving average is rising sharply and closed at 7190. This is bullish.
The 50 day moving average is rising and closed at 6884. This is bullish but still below the 100 day moving average.
The 100 day moving average is rising and closed at 6896. Each day that the 100 day is above the 50 day is a sign of underlying weakness to the uptrend.
The 200 day moving average is rising and closed at 6711 This is bullish.
The Lower Bollinger Band is still climbing and closed above the 100 day moving average. This is bearish. The Upper Bollinger Band is moving higher which is bullish.
The SPX chart is more bullish than bearish for Wednesday but are signaling that the market breadth is poor for the bulls and the market is due for a dip.
SPX Stock Market Outlook review of Tue May 12 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising. This is bullish.
|
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Apr 7 2026. On Tue May 12 2026 the up signal lost strength.
|
Ultimate Oscillator: The Ultimate Oscillator is rising which is bullish.
|
Slow Stochastic: The Slow Stochastic has an up signal in place. It is extremely overbought. It is at levels where a pullback should be expected.
|
Relative Strength Index: The RSI signal is falling and is at overbought readings.
|
| Rate of Change: The rate of change is falling and signaling a lower close is likely. 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. |
Stock Market Outlook: Support and Resistance Levels |
| 7425 is resistance |
| 7400 is resistance |
| 7370 is resistance |
| 7350 is resistance |
| 7280 is resistance |
| 7250 is resistance |
| 7230 is resistance |
| 7200 is resistance |
| 7190 is resistance |
| 7175 is resistance |
| 7150 is resistance |
| 7125 is resistance |
| 7100 is support |
| 7050 is support |
| 7000 is support |
| 6950 is support |
| 6900 is support |
| 6875 is support |
| 6850 is support |
| 6800 is support |
Stock Market Outlook for Wed May 13 2026
For Wed May 13 2026 stocks are positioned to try to bounce off Tuesday’s sell-off but fail and move lower. A lower close is expected for a second day. The 100 day moving average continues to outpace the 50 day which is a sign of major weakness to the present rally. A lower close is expected again on Wednesday. On Tuesday the Consumer Price Index came in higher than estimated which spooked the market. Today we get the Producer Price Index numbers which are now estimated to be higher than anticipated. This will be bearish for stocks, show the PPI come in higher.
Potential Economic and Political Market Moving Events
Monday:
10:00 Existing home sales for April came in lower than estimated at 4.02 million.
Tuesday:
8:30 The Consumer Price Index is revealed. Estimates are for a drop to 0.6% versus 0.9% prior
830: CPI year-over-year is estimated to rise to 3.8% from 3.3% prior – this will be bearish for stocks
8:30 Core CPI is estimated at 0.3% versus 0.2% prior
8:30 Core CPI year-over-year is estimated at 2.7% versus 2.6% prior
Wednesday:
8:30 Producer Price Index is released for April. Estimates are for a rate of 0.5%, unchanged from the prior month.
8:30 Core PPI is estimated at 0.3% up from 0.2% prior
8:30 PPI year-over-year is estimated to rise to 4%
8:30 Core PPI year-over-year is estimated to rise to 3.8%