Prior Trading Day Summary:
On Tuesday the PPI numbers were disappointing coming in at 0.4% versus the expected 0.2%. The initial reaction was negative but by early afternoon stocks started to rally. By the close the SPX is just a handful of points away from its all-time high and the NASDAQ was sitting at a new high.
The SPX rose 25 points to end the day at 5246. The NASDAQ climbed 123 points and ended at 16511 a new all-time closing high.
For Wednesday investors get the latest CPI numbers and that will impact at least the morning. The technical indicators will have more impact but he afternoon.
Let review the closing technical signals from Tue May 14 2024 to see what to expect for Wed May 15 2024.
Stock Market Outlook: SPX Closing Chart For Tue May 14 2024
The index closed above the 21 day moving average and the 50 day and at the Upper Bollinger Band. This is bullish.
The closing candlestick is bullish for Wednesday.
The 21 day moving average is still below the 50 day moving average for a down signal but finally turning up. This is bullish.
The 50 day moving average is climbing which is bullish.
The 200 day moving average is still climbing. The 200 day is at 4791 which is bullish and the 100 day is also climbing.
The Lower Bollinger Band is below the 100 day moving average and falling. This is bullish. The Upper Bollinger Band is turning higher. This is bullish.
The S&P chart is more bullish that bearish for Wednesday which will support the bulls even if the CPI numbers disappoint.
SPX Stock Market Outlook review of Tue May 14 2024 – Chart courtesy TradingView
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri May 3. The up signal gained more strength on Tue May 14 2024.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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Slow Stochastic: The Slow Stochastic has a potential change signal in place and is overbought.
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Relative Strength Index: The RSI signal is rising and positive. It is overbought.
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Rate of Change: The rate of change signal is rising signaling that Wednesday will be higher.
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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 support |
| 5125 is support |
| 5115 is support |
| 5100 is support |
| 5075 is support |
| 5050 is support |
| 5025 is support |
| 5000 is light support |
| 4990 is light support |
Stock Market Outlook for Wed May 15 2024
On Wednesday before the open, investors get the latest Consumer Price Index numbers including core CPI and year-over-year. The expectation is a drop to 3.4% from 3.5% for year-over-year. The CPI index is expected to rise to 0.4% from 0.3% prior. We also get retails sales with and without autos which are expected to come in at 0.2% (without autos), down from 0.9% prior.
The the reports are close the index will climb from the open. If the reports are disappointing, we should see some weakness but the day may still end higher.
Potential Economic and Political Market Moving Events
There are a number of reports this week that will impact markets. The Producer Price Index on Tuesday and Consumer Price Index on Wednesday could move markets.
Monday:
There are no reports released today.
Tuesday:
8:30 Producer Price Index reports
10:00 Fed Chair Powell speaks
Wednesday:
8:30 Consumer Price Index reports
8:30 Retail sales with and without autos
10:00 Home builder confidence index
10:00 Business inventories