Market Direction today continues to follow the technical indicators as the selling earlier in the day was once again seen as a buying opportunity and the Dow closed higher. My market direction tonight will be short as I am working on some large articles which I will be posting this week.
Market Direction Closings
The S&P 500 closed at 1525.20, up 7.00 points and the Dow closed at 14,127.82, up 38.16 points as it climbs ever closer to making a new all time high. The NASDAQ closed at 3182.03 up 12.29.
Market Direction Technical Indicators At The Close of Mar 04 2013
Let’s take a moment now and review the market direction technical indicators at today’s close on the S&P 500 and view the next trading day’s outlook.
For Momentum I am using the 10 period. Momentum is has turned up and moved positive although per Friday it is more neutral than positive.
For MACD Histogram I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) is still confirming the sell signal but it is rising.
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.
The Ultimate Oscillator shot up today in dramatic fashion and it moving toward being overbought..
Rate Of Change is set for a 21 period. Rate Of Change is still positive but it is starting to fall.
For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic is overbought but continues to signal that the market direction is higher.
For the Fast Stochastic I use the K period of 20 and D period of 5. These are not default settings but settings I set for the 1 to 3 month S&P 500 chart when it is set for daily. The Fast Stochastic is also overbought and it too is signaling market direction is higher.
Market Direction Outlook And Strategy for Mar 05 2013
The market direction outlook for the Tuesday March 5 is for much of the same. I will not be surprised by weakness during the day but unless something dramatic happens the market should continue with the sideways action with a slight bias to up. I am staying with my cautious strategy as the Dow pushes toward breaking the all-time high set back in 2007. There is not a lot to report aside from the continual buying of dips by investors which catches every pull back in the indexes and pushes the market direction back up. The outlook is for much of the same for Tuesday.
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