Stock Market Outlook for Wed May 29 2024 – Choppy – Sideways Bias Lower

Prior Trading Day Summary:

On Tue May 28 2024 the SPX opened higher but was unable to build any upside momentum. With a lack of interested buyers and continuing warnings that interest rates may not come down even in the fall, investors spent the day taking profits and looking for a few trades. The S&P ended the day almost unchanged, up just 1 p point at 5306.

The NASDAQ closed up 99 points to end the day at a new closing high of 17,019. The NASDAQ saw good volume earlier in the day and made a new intraday all-time high of 17032.

For Wednesday investors get the latest Fed Beige Book at 2:00 PM. Not much is expected following last week’s FOMC minutes. Still, these types of Fed events can increase volatility at times.

Let review the closing technical signals from Tue May 28 2024 to see how what to expect for Wed May 29 2024.

Stock Market Outlook: SPX Closing Chart For Tue May 28 2024

The index closed above the 21 day moving average and the 50 day. It is still primarily moving sideways which is evident in the chart..

The closing candlestick is bullish but it is also often seend before a down day, which means watch for some weakness on Wednesday.

The 21 day moving average is still climbing continuing the latest up signal.

The 50 day moving average is climbing which is bullish.

The 200 day moving average is still climbing. The 200 day is at 4835 which is bullish and the 100 day is also climbing to 5048.

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. If it crosses above the 100 it will be another up signal.

The S&P chart is bullish but the closing candlestick is a bit of concern.

SPX Stock Market Outlook review of Tue May 28 2024 – chart courtesy TradingView

Stock Market Outlook: Technical Indicators Review

Stock Market Outlook for Wed May 29 2024 

The technical indicators for Wednesday are still positive but there are some cautionary signals advising that weakness is creeping into the index. Often after moving sideways for several sessions the index can slip but that brings in buyers and the index can then break higher. We could see such a scenario developing. As well when the index trends sideways media pundits begin to warn of a drop as most investors are used to markets moving higher or lower as sideways markets can test even seasoned investors. With the FullyInformed strategies a sideways market can often present some excellent trade opportunities such as some of those setup yesterday and last week.

For Wednesday the Fed’s Beige Book which is released at 2:00 PM might create some volatility but the chance of anything new following the FOMC minutes is slim. Wednesday could end up being choppy and keeping a bearish bias for the day. The rally though is not over.

Potential Economic and Political Market Moving Events

On Wednesday the Fed’s Beige Book is released. That can cause some volatility. Friday we get the latest PCE numbers. Those numbers could swing the markets.

Monday:

Memorial Day

Tuesday:

9:00 Case-Shiller home price index is expected to be unchanged at 7.3%

10:00 Consumer Confidence is expect to slip to 96.0 from 97.0 prior

Wednesday: 

2:00 Fed Beige Book