Tuesday saw the S&P make another new intraday high as it reached 3047.87 before backing off and closing down 2.53 points on the day. The drop was understandable and not a concern. Investors were taking profits and using the drop in Alphabet Stock (GOOGL) and Beyond Meat Stock (BYND) among others, a reasons for taking profits. However most of the action was a result of investors preparing for the Fed’s announcement on Wednesday on interest rates.
While the outlook for Wednesday is truly all about the Fed’s decision, it is still worthwhile to take a look at the market technically to see how it stands just ahead of what most expect will be another interest rate cut.
Stock Market Outlook Chart Comments At The Close on Tue Oct 29 2019
The SPX chart is bullish and closed above 3000 again on Tuesday. The Upper Bollinger Band is rising and the Lower Bollinger Band is falling, indicating more upside lies ahead for the index.
The swings in the market on Tuesday have left behind a neutral candlestick for Wednesday.
All the major moving averages are climbing including the 50 and 21 day moving averages.
The two buy signals from September are still in place.
The 200 day moving average is now above the Lower Bollinger Band which is a bullish signal.
Stock Market Outlook review of Tue Oct 29 2019
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is positive and moving more sideways than up or down.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Oct 15 2019. The up signal was strong on Tuesday.
- 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 signal is positive and 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 a neutral signal in place and is extremely 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 falling back 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 dipping slightly
- 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:
3000 is resistance
2960 is light support
2950 was light support
2900 is light support
2860 is light support
2840 is support
2800 is strong support
2795 is light support
2745 to 2750 is light support
2725 is light support
2700 is light support
2675 is light support
2650 is support
2625 is light support
2600 is support.
Stock Market Outlook for Tomorrow – Wed Oct 30 2019
3000 remains resistance for the S&P at the present time.
On Wednesday afternoon, it is expected that the Fed will cut another quarter of a point from interest rates. While the rate cut could send stocks higher, often it is the news conference afterwards that can send stocks up or down, so that conference is worth watching.
If the Fed fails to cut rates the outlook will be lower. Even if stocks don’t immediately fall back on any news of no interest rate cut, they will shortly after. That could set up a test of 3000.
My outlook is for the Fed to cut the rate a quarter of a point on Wednesday and then leave rates unchanged for the winter, unless something more dramatic should occur, forcing the Fed to act.
The technical indicators are still displaying strength within the S&P, but a lot now depends on the Fed’s decision on interest rates on Wednesday, for the immediate market movement, up (as expected) or down.
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
