Prior Trading Day Summary:
On Monday investors kept the rally from Friday alive by pushing stocks still higher.
Volumes slipped slightly from Friday’s numbers but still showed investor conviction in the present rally.
The SPX rose 10 points to close at 4850.
The NASDAQ rose 49 points to close at 15360, another 52 week closing high. .
Let’s review Mon Jan 22 2024 closing technical indicators to see what to expect for Tue Jan 23 2024.
Stock Market Outlook: SPX Closing Chart For Mon Jan 22 2024
The index closed above the Upper Bollinger Band at a new all-time high which is bullish.
The 21 day moving average is moving higher which is bullish.
The closing candlestick is bullish for Tuesday but signals there will be some selling and a probable dip.
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 moving above the 4400 on the SPX which is bullish.
The Bollinger Bands Squeeze is still underway with the Lower Bollinger Band turning lower. The Upper Bollinger Band is moving higher which is bullish. The signal now looks like stocks will move higher out of the Bollinger Bands Squeeze.
The S&P chart is bullish for Tuesday but warns there will be dips.
Stock Market Outlook review of Mon Jan 22 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 a down signal on Tue Jan 2. The down signal was ready to turn to an up signal.
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Ultimate Oscillator: The Ultimate Oscillator is unchanged and positive. It is entering overbought.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is moving back to overbought.
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Relative Strength Index: The RSI signal is unchanged and overbought.
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Rate of Change: The rate of change signal is falling and positive. It is signaling a lower day could be in-store for Tuesday.
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Stock Market Outlook: Support and Resistance Levels |
| 4875 is resistance |
| 4850 is resistance |
| 4825 is resistance |
| 4815 is resistance |
| 4800 is resistance |
| 4780 is resistance |
| 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 |
| 4535 is support |
| 4520 is support |
| 4500 is support |
Stock Market Outlook for Tue Jan 23 2024
For Tuesday the technical indicators are advising that dips are likely. A negative close is not expected but is possible. The technical signals however are pointing to a higher close as probable.
There are no economic events on Tuesday which should support the bulls. Wednesday though, investors get the latest services and manufacturing PMI numbers. These could result in some selling if the numbers are poorer than expected.
Potential Economic and Political Market Moving Events
The main economic reports this week are PMI on Wednesday, durable goods on Thursday and PCE on Friday.
Monday:
10:00 Leading economic indicators were expected to rise slightly to -0.3% but rose to -0.1% showing some strength.
Tuesday:
No economic events