Prior Trading Day Summary:
On Tuesday stocks took a breather from the recent rally. The S&P ended the day up 7 points to 5187. The NASDAQ closed lower down 16 points to end the day at 16,332.
With many stocks overbought in the present rally, the indexes are seeing some selling. This selling may continue Wednesday.
Let’s review the closing technical indicators from Tue May 7 2024 to see what investors should expect on Wed May 8 2024.
Stock Market Outlook: SPX Closing Chart For Tue May 7 2024
The index closed above the 21 day moving average and the 50 day. This is bullish.
The closing candlestick is signaling that Wednesday could see some selling but should move still higher.
The 21 day moving average is below the 50 day moving average for a down signal but should turn up shortly.
The 50 day moving average is back climbing which is bullish.
The 200 day moving average is still climbing. The 200 day is at 4770 which is bullish and the 100 day is also climbing.
The Lower Bollinger Band is below the 100 day moving average but turned sideways and should climb shortly. The Upper Bollinger Band is falling which is bearish.
The S&P chart is more bullish than bearish for Wednesday.
SPX Stock Market Outlook review of Tue May 7 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 gained more strength Tue May 7 2024.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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Slow Stochastic: The Slow Stochastic has an up 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 unchanged for Wednesday indicating stocks may have a hard time rising today.
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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 resistance |
| 5125 is resistance |
| 5115 is resistance |
| 5100 is support |
| 5075 is support |
| 5050 is support |
| 5025 is support |
| 5000 is light support |
| 4990 is light support |
| 4975 is light support |
| 4950 is support |
Stock Market Outlook for Wed May 8 2024
For Wednesday the close on Tuesday advises that the technical indicators are inplace and stocks are expected to move higher, even slightly, into the close. The outlook remains still bullish even with an uptick in investors selling some positions or trimming stocks that have rallied strongly higher.
There are no economic events or reports that will affect market action today however 3 Fed officials speak today and that may have a bit of an effect.
Potential Economic and Political Market Moving Events
The main event this week is on Friday when the consumer sentiment is released.
Monday:
Two Fed Presidents speak. One at 12:50 and a second at 1:00 PM. Their comments are not expected to impact stocks.
Tuesday:
3:00 Consumer Credit expected to rise to $15.0 billion
Wednesday:
10:00 Whole inventories are expected to dip to -0.4%