Prior Trading Day Summary:
Monday saw the rally continue to spike higher. The SPX made a new intraday high of 6053 and closed at 6047, but there are some signals advising the market may dip.
The NASDAQ closed up 185 points or almost 1% to end the day at 19404 after making a new intraday high of 19437.
The S&P saw 4.5 billion shares traded but 60% of the volume was being traded lower.
The NASDAQ saw 6.5 billion shares traded with 42% of that volume being traded lower.
The index is showing more signs of being overbought and dips are becoming more likely.
Let review the closing technical signals from Mon Dec 2 2024 to see what to expect for Tue Dec 3 2024.
Stock Market Outlook: SPX Closing Chart For Mon Dec 2 2024
The index pushed to its highest level of the year on Monday. This is bullish.
The closing candlestick has a small shadow which indicates dips are expected today.
The 21 day moving average is higher at 5935. This is bullish.
The 50 day moving average is higher at 5845. This is bullish.
The 100 day moving average is rising and closed at 5705 which is bullish.
The 200 day moving average is in an uptrend and closed at 5458 which is bullish.
The Lower Bollinger Band is below the 50 day and starting to rise sharply. The Upper Bollinger Band is starting to turn lower. The chance of a Bollinger Bands Squeeze is starting to build. This is currently bearish.
The S&P chart is bullish for Tuesday but signaling that the index is overbought and stocks are likely to slip today.
SPX Stock Market Outlook review of Mon Dec 2 2024
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 Monday Nov 25 2024. The up signal was stronger on Monday.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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Slow Stochastic: The Slow Stochastic has an up signal and is overbought. The signal could change to down on Tueday.
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Relative Strength Index: The RSI signal is rising and very overbought.
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Rate of Change: The rate of change signal is rising sharply. Often this signals a dip is growing.
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Stock Market Outlook: Support and Resistance Levels |
| 6050 is resistance |
| 6025 is resistance |
| 6015 is resistance |
| 6000 is resistance |
| 5990 is resistance |
| 5970 is resistance |
| 5950 is resistance |
| 5900 is rsistance |
| 5890 is resistance |
| 5875 is support |
| 5850 is support |
| 5825 is support |
| 5800 is support |
| 5790 is support |
| 5775 is support |
| 5765 is support |
| 5750 is support |
| 5725 is support |
| 5700 is support |
Stock Market Outlook for Tue Dec 3 2024
On Monday volumes showed a lot of selling underneath the rise in both indexes. The selling shifted some of the technical indicators to readings of being overbought and setting up for a potential dip.
The rally still has room to move higher but the chance of a dip on Tuesday is high. The index could still close up but a dip or dips are more likely today or as the week progresses.
All the economic numbers on Monday pointed to more strength in the economy than estimated. Job openings on Tuesday could see stocks move lower or higher around 10:00, depending on the number released.
Potential Economic and Political Market Moving Events
Monday:
9:45 S&P final manufacturing PMI came in higher than estimated at 49.7
10:00 ISM manufacturing came in higher than estimated at 48.4%
10:00 Construction spending rose to 0.4% from 0.1% prior
Tuesday:
10:00 Job openings are estimated at 7.5 million
Anytime – Auto sales are estimated to rise to over 16 million