Prior Trading Day Summary:
On Tuesday investors opened the day lower but spent most of the afternoon moving stocks higher to close positive on the day.
The S&P gained 11 points and closed at 4954. 68% of all stocks were rising on volume of almost 4.6 billion shares, the highest volume since Jan 31.
The NASDAQ gained 11 points and closed at 15609. 61% of all stocks were rising on 4.8 billion shares traded which is slightly lower than averages we have seen.
Let’s review Tuesday’s closing technical indicators to see what to expect for Wed Feb 7 2024.
Stock Market Outlook: SPX Closing Chart For Tue Feb 6 2024
The index closed just below Upper Bollinger Band which is bullish.
The closing candlestick has a long shadow indicating there is a chance for a dip and possibly even a slightly lower close on Wednesday.
The 21 day moving average is moving higher which is bullish. It is above the 4800 valuation.
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 rising as is the Upper Bollinger Band. At present this is bullish.
The S&P chart is bullish for Wednesday but the closing candlestick is a warning to watch for dips.
Stock Market Outlook review of Tue Feb 6 2024
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Tue Jan 23 2024. On Tue Feb 6 2024 the up signal was slightly weaker.
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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 and is overbought.
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Relative Strength Index: The RSI signal is rising and positive. It is entering overbought readings.
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Rate of Change: The rate of change signal is unchanged signaling Wednesday may not be much different from Tuesday.
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Stock Market Outlook: Support and Resistance Levels |
| 4990 is resistance |
| 4975 is resistance |
| 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 |
| 4500 is support |
Stock Market Outlook for Wed Feb 7 2024
The technical indicators are still mixed but is slowly shifting to a bit more strength. As well the Market Breadth Indicators widened a bit on Tuesday with more stocks rising.
The closing candlestick is warning that Wednesday could see dips but a lower close, while possible, won’t signal any change in the overall bullish trend.
On Wednesday, dips are opportunities to setup trades.
Potential Economic and Political Market Moving Events
There are not as many events this week that will impact stocks. That should help the bulls.
Monday:
9:45 Final service PMI is expected to be unchanged at 52.9 but came in slightly lower at 52.5
10:00 ISM services is expected at 52.0% but rose slightly to 52.5%
Tuesday:
4 Fed Presidents speak during the day but there are no economic reports to move the markets. This could support the bulls.
Wednesday:
8:30 Trade deficit is estimated at $62.1 billion
3:00 Consumer credit is expected to decline to $15 billion