Prior Trading Day Summary
On Tue Sep 23 2025 Fed Chair Powell comments on stocks being overvalued weighed on many investors who decided to take some profits. After 3 strong days of gains it was not surprising to see profit-taking as stocks in general, are overbought.
The SPX fell 36 points to end the day at 6656. Intraday though the SPX made a new intraday high of 6699, just 1 point shy of 6700. Volume was once again 5.8 billion shares with 52% of all stocks falling by the close.
The NASDAQ fell 215 points to end the day at 22,573. Volume was 10.1 billion shares traded with 60% of all stocks declining by the end of trading.
Lets review the closing technical indicators from Tue Sep 23 2025 to see if stocks may try to rebound on Wed Sep 24 2025.
Stock Market Outlook: SPX Closing Chart For Tue Sep 23 2025
The index closed above the 21 day moving average and just below the Upper Bollinger which is bullish.
The closing candlestick is however bearish for Tuesday.
The 21 day moving average is rising and closed at 6541 which is bullish.
The 50 day moving average is rising and closed at 6438 which is bullish.
The 100 day moving average is rising and closed at 6259 which is bullish.
The 200 day moving average is rising and closed at 6042 which is bullish.
The Lower Bollinger Band is turning sideways which is bullish. The Upper Bollinger Band is rising which is bullish. At present the outlook is still for stocks to move higher.
The SPX chart is more bullish than bearish heading into Wednesday. All moving averages are above 6000 which is bullish for further advances.
SPX Stock Market Outlook review of Tue Sep 23 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive.
|
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Wed Sep 10 2025. On Tue Sep 23 2025 the up signal lost some strength.
|
Ultimate Oscillator: The Ultimate Oscillator is falling.
|
Slow Stochastic: The Slow Stochastic has a weak down signal in place and is signaling overbought.
|
Relative Strength Index: The RSI signal is falling and not overbought.
|
| Rate of Change: The rate of change is falling, signaling a lower close is expected for Wed Sep 24 2025. 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. |
Stock Market Outlook: Support and Resistance Levels |
| 6700 is resistance |
| 6675 is resistance |
| 6650 is resistance |
| 6625 is resistance |
| 6600 is resistance |
| 6590 is resistance |
| 6570 is resistance |
| 6535 is resistance |
| 6510 is resistance |
| 6500 is resistance |
| 6470 is resistance |
| 6450 is resistance |
| 6425 is resistance |
| 6400 is resistance |
| 6390 is resistance |
| 6350 is support |
| 6325 is support |
| 6300 is support |
| 6250 is support |
| 6225 is support |
| 6200 is support |
| 6175 is support |
| 6150 is support |
| 6125 is support |
| 6100 is support |
Stock Market Outlook for Wed Sep 24 2025
Comments from Fed Chair Powell helped to weaken stocks on Monday but he wasn’t telling investors anything, they did not already know. That’s part of the reason why the selling was muted throughout the day. Investors were not dumping stocks but simply taking some profits.
For Wed Sep 24 2025 dips are still likely as more profit-taking will occur. However while the technical indicators are advising that the index will close lower, today, there are almost as many signs to advise investors that the index could close flat to possibly even higher on Wednesday.
On Wednesday we get new home sales at 10:00. Most investors know the housing market is poor. For that reason I am not expecting much, if any, reaction from investors when the new home sales numbers are released.
Potential Economic and Political Market Moving Events
Monday:
There are no economic reports
Tuesday:
9:45 S&P flash services PMI came in slightly better than estimated at 53.9
9:45 S&P flash manufacturing PMI was better than estimated coming in at 52.0
12:35 Fed Chair Powell speaks
Wednesday:
10:00 New Home Sales are estimated to dip to 650,000 from 652,000 prior