Tuesday saw high volumes on both the SPX and the NASDAQ. The S&P made another new high brushing against 4600 when it reached 4598. The close was 4574 a gain of 8 points on the day.
The NASDAQ closed up 9 points to 15235. Both markets saw some wide swings in numerous stocks on Tuesday.
Let’s review the closing technical readings from Tue Oct 26 2021 to see what is in-store for Wed Oct 27 2021 as we continue with Halloween Week.
Stock Market Outlook Chart Comments At The Close on Tue Oct 26 2021
The index closed just below the Upper Bollinger Band for a third day.
Tuesday’s closing candlestick is neutral and signaling a chance for a possible lower close for Wednesday.
The Upper Bollinger Band is still rising and the Lower Bollinger Band is still falling, both of which is bullish.
The 21 day moving average which fell below the 50 day last week, is still turning higher and could cross above the 50 day shortly. This is bullish.
The 50 day is also turning higher as is the 100 and 200 day moving averages. This is bullish.
For Wednesday the only concern is once again the closing candlestick from Tuesday which is warning that the advance may dip on Wednesday.
Stock Market Outlook review of Tue Oct 26 2021
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 Wed Oct 13 2021 . On Tuesday the up signal was still strong but slipped for a fourth straight day.
- 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 falling and signaling overbought.
- 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 a down 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 trending sideways and still 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 resistance
4525 is resistance
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
4290 is light support
4270 is light support
4250 is good support
4225 is light support
4200 is good support
4175 is light support
Stock Market Outlook for Tomorrow – Wed Oct 27 2021
The technical indicators for Wednesday are more mixed with a number losing strength and starting to fall. Most are still showing overbought readings. MACD still has a strong up signal but for 4 days it has lost strength.
Weakness on Wednesday may not last long however, if buyers continue to snap up stocks that dip.
The outlook is for a weaker choppy trading day on Wednesday with the chance for a lower close but a lot will still depend on buyers who missed most of the rally and continue to use dips to buy stocks, even as the SPX is touching 4600.
Stock Market Outlook Archives
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Stock Market Outlook For Fri May 1 2026 – Overbought But Higher
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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
