On Friday stocks held their gains and closed up for the week. marking the second straight week of gains for the indexes.
The S&P index ended up 4.90 to 2476.55
Dow Jones Index Close
The Dow Jones ended up 39.46 to 21,987.56
NASDAQ Index Close
The NASDAQ closed up 6.67 to 6435.33
Stock Market Outlook
Stock Market Outlook review of Sep 1 2017
Chart Comments At The Close:
The S&P on Friday closed nearing the Upper Bollinger Band and above the 21 day moving average. The closing candlestick however was neutral or indecisive at the close which often means a slip lower on the following day. The 21 day exponential moving average (EMA) reached the 50 day moving average on Friday which is bearish. The 100 and 200 day moving averages are still climbing.
Stock Market Outlook: Technical Indicators:
Momentum: For momentum I use a 10 period when studying market direction. Momentum is positive and rising strongly.
MACD Histogram: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) issued a buys signal on Aug 31. It was confirmed on Sep 1.
Ultimate Oscillator: The Ultimate Oscillator settings are: Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months. The Ultimate Oscillator is positive and rising.
Slow Stochastic: For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic tries to predict the market direction further out than just one day. The Slow Stochastic has an up signal still in place for Tuesday.
Relative Strength Index: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It often is the first indicator to show an overbought or oversold signal. The RSI signal is rising and entering overbought signals.
Rate of Change: Rate Of Change is set for a 21 period. This indicator looks back 21 days and compares price action from the past to the present. The rate of change signal is positive and pointing to prices rising further.
Support Levels To Be Aware Of:
The market has light support at 2450 and good support at 2425. There is also light support at 2400, 2380, 2350 and 2300.
Stock Market Outlook for Tomorrow – Tue Sep 5 2017
All the technical indicators are bullish and pointing to the S&P as recovered and ready to move higher. The testing of a hydrogen bomb by North Korea should pullback the market on Tuesday. It will also be an excuse to take some profits.
However after pulling back for Tuesday it should be temporary unless something “bigger” hits the markets on Tuesday or Wednesday.
Markets should bounce back after being negative on Tuesday. We may even see them already start to recover from morning weakness later in the day on Tuesday.
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