Prior Trading Day Summary:
On Tuesday the outlook was for weakness and another bounce attempt ahead of the elections. Instead, investors jumped into stocks in a big way with a belief that the election would be more defined than many analysts expected. Instead of a tight race, many investors, especially those betting on the outcome, believed it would not be as close as predicted.
The SPX ended the day on Tuesday up 70 points on 3.8 billion shares traded. The NASDAQ rose 259 points to close at 18,439 on 7.3 billion shares traded.
Tuesday night as returns started to come in, it became evident that former President Trump was on the verge of making history with what turned out to be an incredible comeback. As well the Republicans gained the Senate and increased their control in the House. After the announcement of the former President being elected, the futures shot higher ahead of Wednesday’s open.
Let’s review the technical signals from Tue Nov 5 2024 to see what they predict for Wed Nov 6 2024.
Stock Market Outlook: SPX Closing Chart For Tue Nov 5 2024
The index closed above the Lower Bollinger Band, the 50 day moving average and just below the 21 day. This is bullish.
The closing candlestick is bullish for Wednesday.
The 21 day moving average rose on Tuesday and is at 5804. This is bullish.
The 50 day moving average is higher at 5706. This is bullish.
The 100 day moving average is rising and closed at 5591 which is bullish.
The 200 day moving average is in an uptrend and closed at 5357 which is bullish.
The Lower Bollinger Band is moving above the 50 day moving average which is bullish. The Upper Bollinger Band isturning lower which could signal another Bollinger Bands Squeeze later this week.
The S&P chart is more bullish than bearish for Wednesday.
SPX Stock Market Outlook review of Tue Nov 5 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and negative.
|
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Wed Oct 23 2024. On Tue Nov 5 2024 the down signal lost strength.
|
Ultimate Oscillator: The Ultimate Oscillator is rising and no longer oversold.
|
Slow Stochastic: The Slow Stochastic has an up signal in place and is oversold.
|
Relative Strength Index: The RSI signal is rising sharply and no longer oversold.
|
Rate of Change: The rate of change signal is rising which indicates a higher day is likely for Wednesday.
|
Stock Market Outlook: Support and Resistance Levels |
| 5890 is resistance |
| 5875 is resistance |
| 5850 is resistance |
| 5815 is resistance |
| 5800 is resistance |
| 5790 is resistance |
| 5775 is resistance |
| 5765 is support |
| 5750 is support |
| 5725 is support |
| 5700 is support |
| 5680 is support |
| 5650 is support |
| 5625 is support |
| 5600 is support |
Stock Market Outlook for Wed Nov 6 2024
For Wednesday the open may be quite high following the elections on Tuesday. That could lead to a dip after a high open but then a higher close is definitely in place for Wednesday. Tomorrow the Fed is expected to cut interest rates a quarter point. If that happens, which seems very likely, Thursday will be higher as well.
Potential Economic and Political Market Moving Events
Monday:
10:00 Factory Orders came in as estimated, down -0.5%
Tuesday:
8:30 Trade deficit came in almost as expected at -$84.4 billion
9:45 S&P final US services PMI came in at 55.0
10:00 ISM Services rose to 56.0 rather than dips as anticipated
Wednesday:
no reports