Prior Trading Day Summary:
Tuesday saw another day of weakness including a lower open down at SPX 5822 which was also the low point for the day. The early morning plunge found immediate buyers. It was a choppy day but the SPX ended the day down just 3 points to close at 5851. The index closed again right back at what is becoming a support level, 5850.
SPX Volume was unchanged from Monday with 3.4 billion shares traded but there were just 76 new 52 week highs. 54% of all stocks were moving lower on Tuesday.
The NASDAQ closed higher again on Tuesday, up 33 points to 18573. Volume was higher at 6.6 billion shares but while 64% of all volume was advancing, 53% of all stocks were falling.
The 10 year Treasury continued its advance and closed at 4.2% which weighed on many investors.
For Wednesday inve3stors get the latest home sales and at 2:00 the latest Fed’s Beige Book.
Let’s review the technical indicators from Tue Oct 22 2024 to see what they predict for Wed Oct 23 2024.
Stock Market Outlook: SPX Closing Chart For Tue Oct 22 2024
The index closed further below the Upper Bollinger Band but still above the 21 day moving average. This has become neutral.
The closing candlestick has shadows top and bottom. This is signaling dips should again be expected.
The 21 day moving average is higher at 5777. This is bullish.
The 50 day moving average is higher at 5663. This is bullish.
The 100 day moving average is rising and closed at 5549 which is bullish.
The 200 day moving average is in an uptrend and closed at 5312 which is bullish.
The Lower Bollinger Band is at the 50 day moving average which is bearish. The Upper Bollinger Band is moving higher which is bullish.
The S&P chart is bullish to neutral for Wednesday.
SPX Stock Market Outlook review of Tue Oct 22 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 Thu Oct 10 2024. On Tuesday the up signal is almost gone. The MACD histogram is ready to turn negative.
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Ultimate Oscillator: The Ultimate Oscillator is rising and positive.
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Slow Stochastic: The Slow Stochastic has a weak up signal in place that could turn down if there is another lower close on Wednesday.
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Relative Strength Index: The RSI signal is falling.
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Rate of Change: The rate of change signal is falling signaling a lower day is possible today.
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Stock Market Outlook: Support and Resistance Levels |
| 5890 is resistance |
| 5875 is resistance |
| 5850 is resistance |
| 5815 is resistance |
| 5800 is resistance |
| 5790 is resistance |
| 5775 is resistance |
| 5765 is support |
| 5750 is support |
| 5725 is support |
| 5700 is support |
| 5680 is support |
| 5650 is support |
| 5625 is support |
| 5600 is support |
| 5575 is support |
| 5550 is light support |
| 5525 is support |
| 5500 is support |
Stock Market Outlook for Wed Oct 23 2024
For Wednesday the technical indicators are advising a lower close is likely with dips which could be a bit deeper in the morning. However even a lower close will not break the overall bullish direction for stocks.
On Wednesday investors get the latest Fed’s Beige Book. Investors will be watching to see if the Book advises any chance of a delay in the expected November rate cut. That will be negative for stocks.
Also on Wednesday we get the latest existing home sales. If they are well above the prior sales numbers stocks could pullback although housing stocks may advance even though the report is for existing home sales and not new.
Potential Economic and Political Market Moving Events
Monday:
10:00 Leading economic indicators were lower than estimated at -0.5%
Tuesday:
No economic reports.
Wednesday:
10:00 Existing home sales are expecting to dip to 3.84 million down just slightly from 3.86 million prior.
2:00 Fed Beige Book