Prior Trading Day Summary
On Tue May 19 2026 oil prices rose as did bond yields and mortgage rates. All of this was too hard for the market to ignore and stocks fell.
The S&P fell 49 points to close at 7353. Volume was unchanged at 5.5 billion but by the close only 28% of all stocks were rising into the close.
The NASDAQ fell 220 points to close at 25,870. Volume dipped to 10.2 billion. Into the close 66% of all stocks on the index were falling. This was an increase from Monday when 62% of all stocks were falling.
Let’s review the closing technical indicators from Tue May 19 2026 to see what they predict for Wed May 20 2026.
Stock Market Outlook: SPX Closing Chart For Tue May 19 2026
The index closed above all major moving averages but below the Upper Bollinger Band. This is bearish.
The closing candlestick is bearish for Wednesday.
The 21 day moving average is rising and closed at 7278. This is bullish.
The 50 day moving average is rising and closed at 6945. This is bullish and the 50 day is gaining on the 100 day which is a bullish sign.
The 100 day moving average is rising and closed at 6946. The 100 day will fall below the 50 day Wed May 20 2026.
The 200 day moving average is rising and closed at 6745. This is bullish.
The Lower Bollinger Band is climbing which is bearish at present. The Upper Bollinger Band is turning sideways which is bearish.
The SPX chart is more bullish than bearish for Wednesday but a dip lower looks likely for Wednesday.
SPX Stock Market Outlook review of Tue May 19 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling. This is bearish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Apr 7 2026. On Tue May 19 2026 a new unconfirmed down signal was generated.
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Ultimate Oscillator: The Ultimate Oscillator is falling which is bearish.
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Slow Stochastic: The Slow Stochastic has a down signal in place.
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Relative Strength Index: The RSI signal is falling.
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| 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 |
| 7500 is resistance |
| 7450 is resistance |
| 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 support |
| 7125 is support |
| 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 20 2026
For Wednesday stocks are set to move lower even though Home Depot Stock (HD) earnings beat estimates. Tonight we get NVIDIA (NVDA) earnings. Historically the company has beat estimates but while the stock rises after earnings are released, normally the stock has fallen once markets reopen. Therefore on Thu May 21 2026 I am expecting NVIDIA Stock (NVDA) will end lower along with the indexes. For today the MACD technical indicator has an unconfirmed down signal in place. I am expecting it will get confirmed today by the close. The outlook is for the index to continue to move lower until reaching 7250 at which time I am expecting a bounce in the SPX. Major support is down at 7000 to 6990. While the SPX could fall to 7000 by next week, I don’t think the index will fall much lower. For today, expect another lower close.
Potential Economic and Political Market Moving Events
Monday:
No reports are expected
Tuesday:
10:00 Pending home sales were better than estimated coming in at 1.4%
Wednesday:
2:00 Minutes of Fed’s May FOMC meeting