Prior Trading Day Summary:
On Tuesday stocks staged a rebound with the SPX closing up 55 points, recovering 66% of Monday’s loss. The NASDAQ rose 391 points recovering 64% of Monday’s loss.
Let’s review the technical indicators at the close on Tue Jan 28 2025 to see what to expect for Wed Jan 29 2025.
Stock Market Outlook: SPX Closing Chart For Tue Jan 28 2025
The index closed above the 50 and 21 day moving averages. This is bullish.
The closing candlestick has a long shadow which signals a dip is likely on Wednesday but a higher close is expected.
The 21 day moving average is rising and closed at 5963 which is bullish. The 21 day is moving higher and should cross back above the 50 day which will end the only down signal in the chart.
The 50 day moving average is rising and closed unchanged at 5983 which is bullish.
The 100 day moving average is rising and closed at 5852 which is bullish.
The 200 day moving average is rising and closed at 5623 which is bullish.
The Lower Bollinger Band is falling which is bullish at present. The Upper Bollinger Band is turning higher which is bullish.
For Wednesday the SPX chart is more bullish than bearish.
SPX Stock Market Outlook review of Tue Jan 28 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Jan 17 2025. The up signal was weaker on Tue Jan 28 2025.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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Slow Stochastic: The Slow Stochastic has a down signal in place and turning lower. It is overbought.
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Relative Strength Index: The RSI signal is rising and is not overbought.
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Rate of Change: The rate of change signal is falling and signaling Wednesday will end lower.
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Stock Market Outlook: Support and Resistance Levels |
| 6125 is resistance |
| 6100 is strong resistance |
| 6090 is resistance |
| 6070 is resistance |
| 6050 is resistance |
| 6025 is resistance |
| 6015 is resistance |
| 6000 is resistance |
| 5990 is resistance |
| 5970 is resistance |
| 5950 is support |
| 5900 is support |
| 5890 is support |
| 5875 is support |
| 5850 is support |
| 5830 is support |
| 5800 is support |
| 5780 is support |
| 5725 is support |
| 5700 is support |
Stock Market Outlook for Wed Jan 29 2025
For Wednesday the technical signals are moving back positive with many rising higher. The latest Fed interest rate announcement on Wednesday afternoon is expected to make no interest rate reduction and the market is not expected to fall after the decision is released.
For Wednesday expect some weakness but a good chance for a higher close. The Fed’s 2:30 press conference often creates some volatility and we could see stocks slip during the conference but I expect any dip on Thursday afternoon will find buyers which will push the index to a higher close.
Potential Economic and Political Market Moving Events
Monday:
10:00 New home sales for December rose to 698,000 beyond all estimates.
Tuesday:
8:30 Durable goods orders were lower than estimated coming in at -2.2%
9:00 S&P Case-Shiller home price index rose as estimated to 4.3% from 4.2%
10:00 Consumer confidence fell to 104.1 from 109.5 prior.
Wednesday:
8:30 Advanced trade balance in goods is estimated at -$103.5 billion
8:30 Advanced retail inventories are estimated to be steady at 0.3%
8:30 Advanced wholesale inventories are estimated unchanged at -0.2%
2:00 FOMC interest rate decision
2:30 Fed Chair Powell press conference