Prior Trading Day Summary
On Tuesday stocks again shook off Middle East worries and climbed higher.
The SPX made another new intraday high as it reached 7273. The index closed up 58 points to end the day at 7259 on 5.4 billion shares traded. By the close 67% of all stocks on the index were rallying.
The NASDAQ also made a new high on Tuesday, reaching 25,361 before closing at 25,326. Volume rose to 8.3 billion shares. New highs on the index rose to 427 while new lows were 111.
After the close on Tuesday Advanced Micro Devices reported earnings and revenue that beat all estimates. This will assist on Wednesday to push indexes still lhigher.
Let’s review the closing technical indicators from Tue May 5 2026 to see what they predict for Wed May 6 2026.
Stock Market Outlook: SPX Closing Chart For Tue May 5 2026
The index closed above all major moving averages but inside the Upper Bollinger Band for an 11th day. This is still bearish despite the index reaching new all-time highs. Markets though can stay overbought for longer than most investors and analysts realize.
The closing candlestick is bullish for Wednesday but with a short shadow on the top which signals dips are likely today.
The 21 day moving average is rising sharply and closed at 7048. This is bullish.
The 50 day moving average is rising and closed at 6836. This is bullish but below the 100 day moving average.
The 100 day moving average is rising and closed at 6844. 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 6676. This is bullish.
The Lower Bollinger Band is turning higher and has moved above the 200 day moving average. This is bearish. The Upper Bollinger Band is trending sideways. This is bearish.
The SPX chart is more bullish than bearish for Wednesday but the overbought nature at present is a drag on the rally. The chance of the indexes moving lower today is slim. Dips are being brought immediately as the markets move higher.
SPX Stock Market Outlook review of Tue May 5 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising. This is bullish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Apr 7 2026. On Tue May 5 2026the up signal lost more strength which is bearish.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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Slow Stochastic: The Slow Stochastic has a down signal in place. It is extremely overbought. It is at levels where a pullback should be expected.
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Relative Strength Index: The RSI signal is rising and heading back into overbought readings.
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| Rate of Change: The rate of change is rising and signaling a higher 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 |
| 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 resistance |
| 7050 is resistance |
| 7000 is resistance |
| 6950 is resistance |
| 6900 is support |
| 6875 is support |
| 6850 is support |
| 6800 is support |
| 6780 is support |
| 6750 is support |
| 6735 is support |
| 6700 is support |
| 6675 is support |
| 6650 is support |
| 6625 is support |
| 6600 is support |
Stock Market Outlook forWed May 6 2026
For Wed May 6 2026, the SPX is setup to move still higher despite the few warnings signs which includes the market being extremely overbought.
Money flows are still bullish with more capital flowing into stocks, especially during periods of dips or weakness.
Wednesday is shaping up to be another choppy day but with a still higher close.
Potential Economic and Political Market Moving Events
Monday:
10:00 Factory orders for March were a lot higher than estimated coming in at 1.5%
Tuesday:
8:30 Trade balance was slightly les than expected coming in at $60.3 billion.
10:00 Job openings came in at 6.87 million, among the higher end of the estimates.
10:00 New Home sales for March rose to 6.87 million which was above estimates.
9:45 S&P final services PMI came in lower than estimated at 51.0
10:00 ISM services came in lower than estimated at 53.6%
Wednesday:
8:15 ADP employment is estimated at 84,000