Stock Market Outlook for Wed Nov 3 2021 – Morning Dips But Higher Still

Tuesday saw another closing high for the S&P of 4631. Intraday the index reached 4635.

The NASDAQ also saw another new closing high, reaching 15,650 and intraday a high of 15,656.

It was another strong day for stocks. Let’s review the close on Tuesday to see what’s in store for Wed Nov 3 2021.

Stock Market Outlook Chart Comments At The Close on Tue Nov 2 2021 

The index closed below the Upper Bollinger Band for a eighth day. You can see in the chart that the index is trending higher but also sideways rather than strongly up. This caused another cautionary candlestick at the close on trading which warns there is the potential for a change.

Of equal importance is the 21 day continuing to move higher above the 50 day moving average. This is bullish.

The Upper Bollinger Band is still rising which is bullish. The Lower Bollinger Band is back turning higher. This is bearish.

The 50, 100 and 200 day moving averages are all climbing. This is bullish.

For Wednesday the chart is bullish except for the closing candlestick and the Lower Bollinger Band.

Stock Market Outlook review of Tue Nov 2 2021

Stock Market Outlook: Technical Indicators Review:

Momentum: Momentum is falling for a fifth day and is positive. The rally is losing strength.

• Settings: For momentum I use a 10 period when studying market direction.

MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Wed Oct 13 2021 . On Tuesday the up signal slipped for an eighth straight day. The rally is losing 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 rising.

• 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 and still very overbought..

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 overbought.

• 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 rising.

• 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:

4600 is resistance

4550 is light support

4525 is light support

4500 is support

4490 is support

4475 is support

4450 is support

4400 is support

4370 is light support

4350 is light support

4300 is light support

 Stock Market Outlook for Tomorrow – Wed Nov 3 2021 

The technical signals for Wednesday are continuing to warn that the rally is losing strength. The index is trending higher but also trending sideways. The Lower Bollinger Band is rising indicating a loss of strength to the upward momentum. In the technical indicators momentum and the MACD indicators are advising that the rally is losing strength. At some point then, the index will suffer a negative day. However for Wednesday there are still enough signals to advise that the day will end still higher although dips in the morning should be expected.

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