Prior Trading Day Summary:
On Monday investors sent stocks to a new all-time closing higher of 4928. Volumes remained low at just 3.6 billion shares traded which is below the usual daily average.
The NASDAQ closed up 172 points to end the day at 15,628. Volume on the NASDAQ rose to 5.1 billion shares closer to daily averages. The all-time high in the NASDAQ was 16,057 on Nov 19 2021 but the rise in the NASDAQ continues to suggest the old high may be challenged shortly.
Let’s review Monday’s closing technical indicators to see what to expect for Tuesday, the day before the Fed’s latest announcement on interest rates due out Wednesday at 2:00 PM.
Stock Market Outlook: SPX Closing Chart For Mon Jan 29 2024
The index closed at the Upper Bollinger Band for a bullish signal. The index is continuing to make higher highs and higher lows which is bullish.
The 21 day moving average is moving higher which is bullish. It is near the 4800 valuation.
The closing candlestick is bullish.
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. The Upper Bollinger Band is moving higher. Both are bullish signals.
The S&P chart is bullish for Tuesday.
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Stock Market Outlook review of Mon Jan 29 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 Tue Jan 23 2024. On Mon Jan 29 2024 the up signal gained strength.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive. It is near overbought.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is overbought.
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Relative Strength Index: The RSI signal is rising and overbought.
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Rate of Change: The rate of change signal is rising and positive. It is signaling a higher day for Tuesday.
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Stock Market Outlook: Support and Resistance Levels |
| 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 |
| 4535 is support |
| 4520 is support |
| 4500 is support |
Stock Market Outlook for Tue Jan 30 2024
For Tuesday the technical indicators are shifted once more back to up and many are moving into overbought readings.
On Tuesday the outlook is higher for stocks. I will be putting together a trade on Tuesday ahead of the Fed’s interest rate decision due out Wednesday at 2:00 PM.
On Tuesday after the close investors get earnings from AMD, Microsoft, Alphabet, Starbucks and many more companies. This will add to the bullish outlook for Tuesday ahead of those earnings.
Potential Economic and Political Market Moving Events
There are many events this week that could impact stocks, in particular the Fed on Wednesday and the Non-Farm Payroll report on Friday. Monday is the only day with no reports. That could support the bulls.
Monday:
No reports are expected
Tuesday:
9:00 Case-Shiller home price index is expected to rise to 5.7%
10:00 Job openings are expected to be unchanged at 8.8 million
10:00 Consumer confidence is expected to rise to 115