Prior Trading Day Summary:
On Tuesday stocks were choppy but managed to close higher with the Dow Jones Index making another new closing high. Choppiness was expected ahead of NVIDIA earnings due out today after the close.
Volume was low at just 2.8 billion for the SPX and 4.5 billion for the NASDAQ.
The S&P squeaked out a 9 point gain to close at 5626. The NASDAQ closed up 29 points at 17,754.
Wednesday will be choppy but should end higher as investors wait for the most important earning report of the year to date, NVIDIA (NVDA).
Let’s review the closing technical indicators from Tue Aug 27 2024 to see what the signals advise for Wed Aug 28 2024.
Stock Market Outlook: SPX Closing Chart For Tue Aug 27 2024
The index closed above all the major moving averages on Tuesday which is bullish.
The closing candlestick is neutral.
The 21 day moving average is turning higher but failed to cross above the 50 day last week. This is bearish.
The 50 day moving average is rising and closed at 5495. This is bullish.
The 100 day moving average is rising and closed at 5355 which is bullish.
The 200 day moving average is in an uptrend and closed at 5130 which is bullish.
The Lower Bollinger Band is below the 100 day moving average and has turned lower which is bullish.
The Upper Bollinger Band is moving higher which is also bullish.
The S&P chart is strongly bullish with the closing candlestick sitting neutral ahead of NVIDIA earnings.
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive. It is no longer overbought.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Wed Aug 14 2024. On Tue Aug 27 2024 the up signal lost some strength which is noticeable in the MACD histogram.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive.
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Slow Stochastic: The Slow Stochastic has an up signal in place. It is overbought.
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Relative Strength Index: The RSI signal is unchanged and positive. It is not overbought.
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Rate of Change: The rate of change signal is unchanged signaling Wednesday will end close to flat.
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Stock Market Outlook: Support and Resistance Levels |
5660 is resistance |
5650 is resistance |
5625 is resistance |
5615 is resistance |
5600 is resistance |
5575 is resistance |
5550 is resistance |
5540 is resistance |
5525 is resistance |
5500 is resistance |
5470 is resistance |
5450 is resistance |
5425 is support |
5400 is support |
5375 is support |
5350 is support |
5325 is support |
5300 is support |
5275 is support |
5250 is support |
5225 is support |
5200 is support |
Stock Market Outlook for Wed Aug 28 2024
For Wednesday the technical indicators are still bullish ahead of earnings from NVIDIA (NVDA). This is without doubt the most important company on the globe at present. Wednesday should stay choppy but sideways with a slightly higher close ahead of the earnings due out today after the close. The technical indicators are advising investors to stay cautiously bullish.
Potential Economic and Political Market Moving Events
Monday:
8:30 Durable goods orders surprised and rose to 9.9% from the prior -6.7%
8:30 Durable goods orders less transportation however came in negative at -0.2%
Tuesday:
9:00 S&P Case-Shiller home price index is expected lower at 6.3% from 6.8% prior
10:00 Consumer confidence is expected to rise slightly to 101 from 100.3
Wednesday:
No reports of consequence