Prior Trading Day Summary:
On Tuesday stocks moved in and out of negative and positive in a choppy day which saw the close with another new high. Volumes increased on both the SPX and NASDAQ.
The SPX traded 4.0 billion shares an increase of 400 million shares to close up 14 points to 5732.
The NASDAQ traded 5.5 billion shares an increase of 100 million shares, to close up 100 points to 18,074.
Let’s review the closing technical indicators from Tue Sep 24 2024 to see what to expect on Wed Sep 25 2024.
Stock Market Outlook: SPX Closing Chart For Tue Sep 24 2024
The index closed above the 21 day moving average and at the Upper Bollinger Band which is bullish.
The closing candlestick has a long shadow which usually signals a larger dip is coming either Wednesday or Thursday but with a higher close.
The 21 day moving average is higher at 5596. This is bullish.
The 50 day moving average is higher at 5522. This is bullish.
The 100 day moving average is rising and closed at 5433 which is bullish.
The 200 day moving average is in an uptrend and closed at 5209 which is bullish. This places the 200 day 8.7% below the close which is bullish.
The Lower Bollinger Band is fell below the 100 day moving average which is bullish.
The Upper Bollinger Band is turning higher which is bullish.
The S&P chart is more bullish than bearish for Wednesday but warning of a deeper dip possible.
SPX- Stock Market Outlook review of Tue Sep 24 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Sep 13 2024. The up signal was stronger on Tuesday.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive.
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Slow Stochastic: The Slow Stochastic is in an up signal and is at overbought levels.
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Relative Strength Index: The RSI signal is rising and positive. It is at overbought levels.
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Rate of Change: The rate of change signal is falling which advises Wednesday will end lower.
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Stock Market Outlook: Support and Resistance Levels |
| 5715 is resistance |
| 5700 is resistance |
| 5650 is resistance |
| 5625 is resistance |
| 5615 is resistance |
| 5600 is resistance |
| 5575 is resistance |
| 5550 is light support |
| 5525 is support |
| 5500 is support |
| 5470 is support |
| 5450 is support |
| 5425 is support |
| 5400 is support |
Stock Market Outlook for Wed Sep 25 2024
For Wednesday the technical indicators remain a bit mixed. Momentum is slipping which is only natural considering the weakness of the move higher over the past couple of days. The Rate Of Change is also pointing lower, again understandable due to the limited rally over the past two days. The remaining indicators are still supportive of the rally continuing into Wednesday. The closing candlestick is warning that on Wednesday or Thursday we could see a bit deeper dip but the close is still expected to be higher.
On Tuesday consumer confidence fell far more than expected and that sent stocks lower. The day turned choppy on Tuesday and we could see a similar day develop today.
Potential Economic and Political Market Moving Events
Monday:
9:45 S&P flash services PMI came in as expected at 55.4
9:45 S&P flash manufacturing PMI was lower than expected at 47
Tuesday:
9:00 Case-Shiller home price index came in lower than expected at 5.9%
10:00 Consumer confidence was a lot lower than expected coming in at 98.7
Wednesday:
10:00 New homes sales are expected to drop to 700,000 from 739,000.