On Tue Nov 7 2017 trading was choppy as expected. The Dow, S&P and NASDAQ indexes managed more all-time highs on Tuesday.
Despite this financial stocks lost ground as the sector gave back 1.3 percent.
Investors also watched PriceLine Stock fall 13.52% and TripAdvisor Stock, one of the Trade Ahead Of Earnings Strategy setups from yesterday collapse 23.2%. I will be updating the trade this evening, but suffice to say, the anticipated full return was made.
S&P 500 Index Close
The S&P index ended down just 0.49 to 2590.64
Dow Jones Index Close
The Dow Jones ended up 8.81 to 23,557.23
NASDAQ Index Close
The NASDAQ closed down 18.65 to 6767.78
Stock Market Outlook
Stock Market Outlook for Wednesday Nov 8 2017
Chart Comments At The Close:
The Bollinger Bands Squeeze showed signs of restarting today as the Lower Bollinger Band turned back up. The Bollinger Bands Squeeze may not be over after all.
The index closed just below the Upper Bollinger Band but left behind a bearish candlestick for Wednesday Nov 8 2017.
The support level at 2550 continues to grow support for the ongoing rally.
All the major moving averages are continuing to move higher.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive and has turned sideways.
MACD Histogram: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) issued a sell signal on Oct 24. I have been predicting the sell signal will turn to a buy signal but that prediction is playing “hard to get”. On Tuesday the MACD closed down by negative 0.12. While I am expecting an up signal any day now, the MACD indicator remains negative.
Ultimate Oscillator: 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. The Ultimate Oscillator signal is sideways.
Slow Stochastic: 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. The Slow Stochastic has an up signal for Tuesday and is overbought.
Relative Strength Index: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It often is the first indicator to show an overbought or oversold signal. The RSI signal is now pointing sideways.
Rate of Change: 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. The rate of change signal is positive and posting sideways.
Support Levels To Be Aware Of:
There is support building at the 2550 level which could assist in pushing the index higher into November.
The S&P has light support at 2480. It also has light support at 2450 and good support at 2425. Below that there is some support at 2400, 2380, 2350. 2300 has the most support at present.
Stock Market Outlook for Tomorrow – Wednesday Nov 8 2017
Stocks turned negative on Tuesday but dips are still being bought into.
Technically the majority of indicators are now pointing sideways for the next several days.
For Wednesday the S&P looks like it will trend sideways but the bias has switched to slightly lower.
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