Prior Trading Day Summary:
On Tuesday stocks had a lackluster day of trading as oil prices rose slightly and investors wait for the CPI numbers on Thursday and PPI numbers on Friday as well as bank earnings.
The SPX lost 7 points to close at 4756.
The NASDAQ rose 14 points to close at 14857.
With a flat day on Tuesday on low volumes, let review Tuesday’s technical indicators to see what to expect for Wed Jan 10 2024.
The question now is whether the second week will see new 52 week highs.
Stock Market Outlook: SPX Closing Chart For Tue Jan 9 2024
The index closed above the 21 day and below the Upper Bollinger Band which is bullish.
The 21 day moving average is rising which is bullish.
The closing candlestick is bullish for Wednesday but has a long shadow which signals some weakness should be expected in the morning.
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 Lower Bollinger Band has moved above the 50 day moving average and with the Upper Bollinger Band dipping lower, the Bollinger Bands Squeeze is underway. Initial signals are for stocks to move higher but as investors know, there are never guarantees in investing.
The S&P chart is more bullish than bearish for Wednesday.
Stock Market Outlook: Technical Indicators Review
Stock Market Outlook review of Mon Jan 8 2024
Momentum: Momentum is falling and just positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Tue Jan 2. The down signal lost strength on Tuesday.
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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.
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Relative Strength Index: The RSI signal is falling and positive.
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Rate of Change: The rate of change signal is falling and positive. It is signaling stocks may repeat Tuesday’s market action.
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Stock Market Outlook: Support and Resistance Levels |
| 4815 is resistance |
| 4800 is resistance |
| 4780 is resistance |
| 4750 is resistance |
| 4720 is resistance |
| 4700 is resistance |
| 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 Wed Jan 10 2024
For Wednesday signals are advising that the morning could be weak and see a dip but a slightly higher close looks likely.
Investors are waiting for the next round of economic indicators followed immediately by bank earnings to determine the next move in stocks. That means Wednesday should be primarily a wait and see day for most investors but with a bullish bias.
Potential Economic and Political Market Moving Events
The main economic reports this week are on Thursday when we get the CPI numbers and Friday when the latest PPI numbers are released.
Monday:
3:00 Consumer credit was expected at $8 billion but came in at a stunning $23.7 billion which could be construed as inflationary
Tuesday:
8:30 Trade deficit is expected to come in at -$64.7 billion but came in at -$63.2 billion
Wednesday:
10:00 Wholesale inventories are expected to be higher by -0.2%