Prior Trading Day Summary:
On Friday the August Non-Farm Payroll Numbers came in well below estimates at 142,000, but above July’s numbers which were revised lower to 89,000.
Investors reacted negatively and by the close the indexes had all faced another sell-off.
The S&P fell 95 points to close the week at 5408. The S&P lost a total of 240 points marking the worst week of the year.
The NASDAQ lost 436 points ending the day at 16,690. For the week the index lost 1022 points. It was also the worst week of the year.
With many investors turning bearish and worried the Fed rate cuts will be too late to avoid a recession, they have pushed many stocks into oversold levels.
Let’s review the closing technical indicators from Fri Sep 6 2024 to see what the signals advise for the start of the second week of September 2024.
Stock Market Outlook: SPX Closing Chart For Fri Sep 6 2024
The index closed at below the 50 day moving average and just above the 100 day which is bearish.
The closing candlestick is bearish but signals a bounce is likely to start the day on Monday.
The 21 day moving average is higher and closed above the 50 day. This is bullish.
The 50 day moving average was unchangedlower and closed at 5505. This is bearish.
The 100 day moving average is flat and closed unchanged at 5379 which is bearish.
The 200 day moving average is in an uptrend and closed at 5157 which is bullish.
The Lower Bollinger Band is below the 100 day moving average and turning up which is bearish.
The Upper Bollinger Band is turned lower. This is bearish.
The S&P chart is more bearish than bullish for Monday.
SPX Stock Market Outlook review of Fri Sep 6 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 Thu Sep 5 2024. The down signal was confirmed on Friday.
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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. It is oversold.
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Relative Strength Index: The RSI signal is falling and negative. It is oversold.
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Rate of Change: The rate of change signal is falling signaling Monday will end lower.
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Stock Market Outlook: Support and Resistance Levels |
| 5615 is resistance |
| 5600 is resistance |
| 5575 is resistance |
| 5550 is resistance |
| 5540 is resistance |
| 5525 is resistance |
| 5500 is support |
| 5470 is support |
| 5450 is support |
| 5425 is support |
| 5400 is support |
| 5375 is support |
| 5350 is support |
| 5325 is support |
| 5300 is support |
Stock Market Outlook for Mon Sep 9 2024
On Friday investors sold the market deep into support levels with the best support at the 5400 level. The index closed just above the 100 day moving average. There is a chance the index may fall to the 200 day this week but with stocks oversold, there is also a chance for a decent bounce to start the week.
A number of the technical indicators are signaling oversold. If Monday ends lower, there is a good chance Tuesday will be higher.
For Monday, expect a bounce, more selling but a chance for a positive close.
Wednesday we get the Consumer Price Index numbers (CPI) and Thursday the Producer Price Index (PPI) numbers. Either of these could impact market direction.
Potential Economic and Political Market Moving Events
Monday:
10:00 Wholesale inventories are expected to rise slightly to 0.3% from 0.2%
3:00 Consumer credit is estimated to rise to $12.0 billion from $8.9 billion.