The PPI report came in slightly lower than expected Tuesday before markets opened. Many analysts moved to the “inflation is slowing” bandwagon and the markets opened considerably higher. The rally though peaked at the open and by 1:41 the index had fallen to 3953. From there buyers returned and pushed the index to close just below the 4000 valuation at 3991.
It was a positive day for the S&P which added in 34 points and wiped out Monday’s loss.
The NASDAQ rose 162 points, besting Monday’s loss of 127 points to close at 11,358.
Let’s review the closing SPX technical indicators from Tuesday to see if investors should expect another choppy day of trading on Wednesday.
Stock Market Outlook Chart Comments At The Close on Tue Nov 15 2022
On Tuesday the S&P closing candlestick was still above all the major moving averages and touched the 200 day moving average at the open. The closing candlestick is bullish for Wednesday. The index managed to close at the Upper Bollinger Band again.
The Upper Bollinger Band has turned back up and is above all the major moving averages and almost above the 200 day. This is bullish.
The Lower Bollinger Band is back climbing which is bullish.
A new up signal was generated on Friday as the 21 day moving average is back above the 50 day. This is bullish and it negated the Sep 16 down signal when the 21 day fell below the 50 day. You will notice it is gone from the SPX chart below.
The 50 day moving average is starting to turn up and the 100 day is turning sideways. Both are bullish signals.
The 200 day moving average is still falling. This is bearish.
There are 6 down signals in place since April and one new up signal.
The chart is 70% bullish for Wednesday.
Stock Market Outlook review of Tue Nov 15 2022
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is rising and positive.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Thursday Oct 16. On Tuesday the up signal gained more strength. The histogram also gained strength.
- Settings: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9.
Ultimate Oscillator: The Ultimate Oscillator is trending sideways.
- Settings: The Ultimate Oscillator settings are: Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months.
Slow Stochastic: The Slow Stochastic has an up signal in place with overbought readings. There is a chance the Slow Stochastic may issue a down signal on Wednesday as you can see the up signal is turning back down.
Settings: For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic tries to predict the market direction further out than just one day.
Relative Strength Index: The RSI signal is rising and back into overbought readings.
- Settings: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It is often the first indicator to show an overbought or oversold signal.
Rate of Change: The rate of change signal is falling but positive.
- 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.
Support and Resistance Levels To Be Aware Of:
4100 is resistance
4090 is resistance
4070 is resistance
4050 is resistance
4030 is resistance
4025 is resistance
4000 is resistance
3975 is resistance
3965 is resistance
3950 is resistance
3925 is light support
3900 is light support
3875 is light support
3850 is light support
3825 is light support
3800 is good support
Stock Market Outlook for Tomorrow – Wed Nov 16 2022
The S&P chart is becoming stronger as only the 200 day moving average is still falling. The closing candlestick is advising the index could move above the 200 day moving average on Wednesday or Thursday.
The technical indicators are a bit mixed but overall are still holding a more bullish stance than a bearish one.
With more retail companies reporting earnings on Wednesday, it could be another choppy day but the technical indicators are advising the index will close higher.
Potential Economic and Political Market Moving Events
On Wednesday a number of reports could swing the market at or near the open.
Tuesday:
8:30 Producer price index expect to come in at 0.4% but came in at 0.2%.
8:30 Empire State manufacturing index expect to come in at -6.0 but came in at 4.5
11:00 Real house debt and mortgage debt
Wednesday:
8:30 Retail sales are expected to come in at 1.2% for October.
8:30 Retail sales without autos are expected to come in at 0.6% for October.
8:30 Import price index is expected to come in at -0.4%
9:15 Industrial production is expected to come in at 0.1%
9:15 Capacity utilization rate is expected to come in at 80.4%
Stock Market Outlook Archives
Stock Market Outlook For Wed May 6 2026 – Choppy But Higher Still
Morning Investing Strategy Notes for Tue May 5 2026
Stock Market Outlook For Tue May 5 2026 – Overbought and Lower
Morning Investing Strategy Notes for Mon May 4 2026
Stock Market Outlook For Mon May 4 2026 – Dips Likely With Possible Lower Close
Morning Investing Strategy Notes for Fri May 1 2026
Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
Morning Investing Strategy Notes for Thu Apr 30 2026
Stock Market Outlook For Thu Apr 30 2026 – Dips Likely Possible Lower Close
Morning Investing Strategy Notes for Wed Apr 29 2026
Stock Market Outlook For Wed Apr 29 2026 – Choppy But Higher Ahead Of More Earnings
Morning Investing Strategy Notes for Tue Apr 28 2026
