Prior Trading Day Summary:
On Friday stocks failed to bounce and selling persisted, albeit at a slower pace. By the end of the day the SPX was down 39 points to 5505. For the week, the SPX lost 110 points.
The NASDAQ ended Friday down 144 points to close at 17,726. For the week the index lost 671 points.
Let review the closing technical indicators from Fri Jul 19 2024 to see if selling will continue Mon Jul 22 2024 or a second bounce commence.
Stock Market Outlook: SPX Closing Chart For Fri Jul 19 2024
The index closed below the 21 day moving average and well below the Upper Bollinger Band. This is bearish but often signals a bounce.
The closing candlestick indicates the index is oversold after three strong sell-off days and should bounce but more downside is likely.
The 21 day moving average is still climbing continuing the latest up signal.
The 50 day moving average is climbing which is bullish.
The 200 day moving average is still climbing. The 200 day is at 5028 which is bullish and the 100 day is also climbing to 5272.
The Lower Bollinger Band fell below the 50 day moving average Wednesday which is bearish. The Upper Bollinger Band is turned sideways which is bearish.
The S&P chart is more bearish short-term than bullish. There are more than one signal advising stocks still have room to fall.
SPX Stock Market Outlook review of Fri July 19 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and negative.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thur July 18. On Fri Jul 19 2024 the down signal was confirmed.
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Ultimate Oscillator: The Ultimate Oscillator is falling and negative.
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Slow Stochastic: The Slow Stochastic has a down signal in place.
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Relative Strength Index: The RSI signal is falling and negative.
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Rate of Change: The rate of change signal is falling signaling that Monday will end lower.
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Stock Market Outlook: Support and Resistance Levels |
| 5675 is resistance |
| 5650 is resistance |
| 5630 is resistance |
| 5600 is resistance |
| 5575 is resistance |
| 5550 is resistance |
| 5520 is resistance |
| 5500 is resistance |
| 5490 is resistance |
| 5475 is resistance |
| 5465 is support |
| 5450 is support |
| 5425 is support |
| 5400 is support |
| 5375 is support |
| 5350 is support |
| 5325 is support |
| 5310 is support |
| 5300 is support |
Stock Market Outlook for Mon Jul 22 2024
For Monday investors should still anticipate a second bounce attempt but more downside is still in the technical signals. The MACD technical indicator confirmed the next move will be lower for stocks. We should see that signal play out during the start of this week.
Potential Economic and Political Market Moving Events
Monday:
No reports