📈 Stock Market Bounce?

Let's review the key indexes.

Index Review

This week we saw the S&P close green for the first time in three weeks. Let’s take a look at the indexes from a technical standpoint to understand where we’re at.

First, looking at S&P 500 futures, you can see below that we came close to testing previous resistance and made an inside bar. It’s possible this is a bullish hook but we would have to see next week’s bar break to the upside from this week’s bar.

Looking at the MACD, we are getting signals that the bottom may not be in. Typically what we’re looking for is a change in color (dark red to light red) which marks bottoms. You can see from previous weeks how that typically calls bounces.

Now, let’s look at the Nasdaq daily chart. You can see that we marked that short term bottom on the MACD and bounced from there, but that is only a short term signal on the daily chart. You can see from the previous time we changed from dark red to light red we still dropped after that.

If you see a long red bar on the MACD next week, it should give you pause. It means that we may be setting up to roll again so this is something I would be watching closely.

I cover the state of the market extensively in this weekend’s video here: