Prior Trading Day Summary:
On Tue May 21 2024 investors pushed stocks still higher for another new all-time closing high of 5321. Volume rose by 500 million on Tuesday but 53% of all trading was to the downside and 48% of all stocks were falling.
The NASDAQ rose 37 points to reach 16832. Volume was 6.5 billion shares traded but 61% of all volume was being traded lower and 53% of all stocks on the NASDAQ were falling.
Let review the closing technical signals from Tue May 21 2024 to see what to expect on Wed May 22 2024.
Stock Market Outlook: SPX Closing Chart For Tue May 21 2024
The index closed above the 21 day moving average and the 50 day and continued moving primarily sideways.
The closing candlestick is bullish but also signals Wednesday could be choppy and stocks will see dips.
The 21 day moving average is above the 50 day which creates a new up signal for the SPX.
The 50 day moving average is climbing which is bullish.
The 200 day moving average is still climbing. The 200 day is at 4817 which is bullish and the 100 day is also climbing to 5027.
The Lower Bollinger Band is below the 100 day moving average and rising which is bullish. The Upper Bollinger Band is turning higher. This is also bullish.
The S&P chart is bullish for Wednesday with some caution on Tuesday’s closing candlestick.
SPX Stock Market Outlook review of Tue May 21 2024 – chart courtesy TradingView
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri May 3. The up signal lost some strength on Tue May 21 2024.
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Ultimate Oscillator: The Ultimate Oscillator is falling and overbought.
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Slow Stochastic: The Slow Stochastic has a down 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 falling signaling the day may end lower on Wednesday.
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Stock Market Outlook: Support and Resistance Levels |
| 5310 is resistance |
| 5300 is resistance |
| 5275 is resistance |
| 5250 is resistance |
| 5225 is resistance |
| 5200 is resistance |
| 5190 is light support |
| 5175 is light support |
| 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 |
Stock Market Outlook for Wed May 22 2024
For Wednesday the outlook is primarily sideways with a bit of weakness. On Tuesday we saw the majority of stocks fall despite the indexes closing positive. This is a warning that the market breadth up is running into selling as the indexes are having trouble rising steadily.
On Wednesday I am expecting primarily a sideways day with some weakness ahead of NVIDIA’s earning gs due out today after the close. The FOMC minutes at 2:00 could see a spike higher but I would expect the close to be primarily sideways.
Potential Economic and Political Market Moving Events
On Wednesday we get May’s FOMC minutes. That may end up being the most significant economic event this week.
Monday:
There are no reports released today.
Tuesday:
There are no reports released today.
Wednesday:
10:00 Existing home sales are expected to rise slightly to 4.21 million
2:00 FOMC minutes for May’s meeting.