Prior Trading Day Summary:
On Friday investors got stronger than expected January payroll numbers and pushed stocks still higher to close up 52 points to 4958. Down volume on Friday though was 59% and 61% of all stocks were falling which indicates weakness and a narrow rally on Friday.
The NASDAQ rose 267 points close at 15628. Volume was also poor with 56% of trading volume to the downside and 56% of all stocks falling. Just as on the SPX, volume indicated weakness and a narrow rally on Friday.
With another busy week of earnings ahead, let’s review Friday’s closing technical indicators to see what to expect for Mon Feb 5 2024.
Stock Market Outlook: SPX Closing Chart For Fri Feb 2 2024
The index closed at the Upper Bollinger Band which is bullish.
The 21 day moving average is moving higher which is bullish. It is above the 4800 valuation.
The closing candlestick is bullish for Monday although indicating a dip may occur in the open.
The 50 day moving average is above the 100 day and still climbing which is bullish.
The 100 and 200 day moving averages are climbing which is bullish. The 200 day is above the 4400 on the SPX which is bullish.
The Lower Bollinger Band is falling below the 50 day moving average but the Upper Bollinger Bandis is back climbing which is bullish.
The S&P chart is bullish for Monday.
Stock Market Outlook review of Fri Feb 2 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is unchanged and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Jan 23 2024. On Fri Feb 2 2024 the up signal gained strength.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive.
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Slow Stochastic: The Slow Stochastic has a down signal in place and is overbought.
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Relative Strength Index: The RSI signal is rising and positive. It is entering overbought readings.
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Rate of Change: The rate of change signal is rising sharply and positive. It is signaling a higher close for Monday.
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Stock Market Outlook: Support and Resistance Levels |
| 4990 is resistance |
| 4975 is resistance |
| 4950 is resistance |
| 4925 is resistance |
| 4915 is resistance |
| 4900 is resistance |
| 4875 is resistance |
| 4850 is resistance |
| 4825 is resistance |
| 4815 is resistance |
| 4800 is resistance |
| 4780 is support |
| 4750 is support |
| 4720 is support |
| 4700 is support |
| 4675 is support |
| 4650 is support |
| 4625 is support |
| 4600 is support |
| 4590 is support |
| 4575 is light support |
| 4565 is light support |
| 4550 is support |
| 4500 is support |
Stock Market Outlook for Mon Feb 5 2024
For Monday the technical indicators gained more strength including the Moving Average Convergence / Divergence indicator which was ready to turn negative.
The upcoming week is another busy week of earnings.
For Monday the index will slip at the open but the close is higher.
Potential Economic and Political Market Moving Events
There are not as many events this week that will impact stocks. That should help the bulls.
Monday:
9:45 Final service PMI is expected to be unchanged at 52.9
10:00 ISM services is expected at 52.0