Prior Trading Day Summary
On Friday Oct 26 stocks fell as oil prices climbed higher with Brent up above $116 a barrel which is the highest level in over four years. Middle East tensions are high and inflation rising. All of this combined to suppress stocks on Friday Oct 23.
The SPX fell 39 points to close at 7623. For the thid week of October the SPX lost 35 points in total. Volume was low at 5.1 billion shares traded with 60% of all volume being traded lower. 61% of all stocks we also falling. For the week though 48% of all stocks were still rising on average.
The NASDAQ fell 53 points closing at 25,955. Volume fell to 6.8 billion shares traded with 64% of all volume moving lower by the close. 59% of all stocks were also falling. But for the week the index lost just 184 points and 49% of stocks were rising on average for the week.
Overall the weekly numbers are not strongly bearish. Let’s review the closing technical indicators from Fri Oct 23 2026 to see what they predict for the start of the final week of October 2026.
Stock Market Outlook: SPX Closing Chart For Fri Oct 23 2026
The index ended the day below the Upper Bollinger Band and the 21 and 50 day moving averages. It closed by the lower Bollinger Band. This is bearish.
The closing candlestick is bearish for Monday but with a top shadow which often signals a bounce is likely, at least at the start of the day.
The 21 day moving average is falling and closed at 7728. This is bearish.
The 50 day moving average is falling and closed at 7699. This is bearish.
The 100 day moving average is rising and closed at 7574. This is bullish.
The 200 day moving average is rising and closed at 7323. This is bullish.
The Lower Bollinger Band is below the 21 and 50 day moving average and falling. This is bullish for stocks. The Upper Bollinger Band is turning higher which is also bullish.
The SPX chart is more bearish than bullish for Monday but the Bollinger Bands are signaling a good chance for a bounce to start the final week of October.
SPX Stock Market Outlook review of Fri Oct 23 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and negative. This is bearish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thu Oct 15 2026. The down signal was stronger on Fri Oct 23 2026. It is signaling a chance for a bounce.
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Ultimate Oscillator: The Ultimate Oscillator is falling which is bearish.
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Slow Stochastic: The Slow Stochastic has a down signal in place and is signaling lower.
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Relative Strength Index: The RSI signal is falling which is bearish.
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| Rate of Change: The rate of change is falling signaling that Monday will end lower.
Settings: Rate Of Change is set for a 21 period. This indicator looks back 21 days and compares price action from the past to the present. With the Rate Of Change, prices are rising when signals are positive. Conversely, prices are falling when signals are negative. As an advance rises, the Rate Of Change signal should also rise higher, otherwise the rally is suspect. A decline should see the Rate Of Change fall into negative signals. The more negative the signals the stronger the decline. |
Stock Market Outlook: Support and Resistance Levels |
| 7850 is resistance |
| 7825 is resistance |
| 7800 is resistance |
| 7780 is resistance |
| 7750 is resistance |
| 7700 is resistance |
| 7650 is resistance |
| 7600 is support |
| 7570 is support |
| 7550 is support |
| 7500 is support |
Stock Market Outlook for Mon Oct 26 2026
For Monday Oct 26 the technical indicators are signaling stocks in general are oversold. They are also signaling that dips could be lower than anticipated for the day. Despite this down outlook, there is broad support for a market move higher, or a bounce to start the final week of October.
On Monday there are no economic or political reports to be released which means stocks have a chance for a rally today.
Potential Economic and Political Market Moving Events
Monday:
No events