Prior Trading Day Summary:
On Monday stocks bounced back in a strong day of gains. The S&P had its best day since the first week of June. The index closed up 59 points to 5564.
The NASDAQ also had a strong day, rising 280 points to close back above 18000. It was also the best up day since June 5.
So was Monday the much anticipated bounce, or the end of the recent selling?
Let review the closing technical indicators from Mon Jul 22 2024 to see what the signals are for Tue Jul 23 2024.
Stock Market Outlook: SPX Closing Chart For Mon Jul 22 2024
The index closed back above the 21 day moving average but well below the Upper Bollinger Band. This is bearish and often indicates a bounce not a change in trend.
The closing candlestick indicates the index was oversold after three strong sell-off days and bounced. There are no signals that Monday’s action was more than a bounce.
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 5033 which is bullish and the 100 day is also climbing to 5277.
The Lower Bollinger Band fell just below the 50 day moving average Wednesday which is bearish but it has not fallen further which often indicates the down move may be over. 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 although Monday’s bounce was strong.
SPX Stock Market Outlook review of Mon Jul 22 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising but negative.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thur July 18. On Mon Jul 22 2024 the down signal gained strength.
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Ultimate Oscillator: The Ultimate Oscillator is rising 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 rising and negative.
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Rate of Change: The rate of change signal is rising signaling that Tuesday will end higher.
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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 Tue Jul 23 2024
For Tuesday we should find out if Monday’s bounce has any staying power or was a one day wonder.
The outlook is for the morning to open slightly weaker, dip a bit but then rallying still higher by the close.
Potential Economic and Political Market Moving Events
Monday:
No reports
Tuesday:
10:00 Existing home sales are expecting to fall to 3.95 million