Prior Trading Day Summary
On Friday stocks and markets plunged in the afternoon on news of President Trump’s posting on 100% tariffs on all Chinese goods being imposed on China in retaliation for rare earth restrictions.
On Sunday however, the President posted that neither China or the USA wanted a depression and indicated the situation with China “will all be fine”. Futures pointed to a bounce of perhaps 40% or more of the losses taken on Friday. However the question is whether the bounce will last just a morning and selling will continue.
The S&P fell 182 points, ending the day at 6552, the worse single day since April 10 when the index lost 188 points on the announcement of tariffs. Volume was 6.7 billion shares traded with 84% of the shares falling.
The NASDAQ fell 820 points to end the day at 22,204. Volume was 12.2 billion shares with 82% of all stocks falling.
Lets review the closing technical indicators from Fri Oct 10 2025 to see what we should expected for Mon Oct 13 2025.
Stock Market Outlook: SPX Closing Chart For Fri Oct 10 2025
The index closed below the Upper Bollinger Band and 21 days moving average. It held above the 50 day moving average. This is bearish.
The closing candlestick is signaling oversold.
The 21 day moving average is falling and closed at 6663 which is bearish.
The 50 day moving average is rising and closed at 6529 which is bullish.
The 100 day moving average is rising and closed at 6356 which is bullish.
The 200 day moving average is rising and closed at 6120 which is bullish.
The Lower Bollinger Band is above the 50 day moving average but falling which is bearish. The Upper Bollinger Band is turning sideways which is neutral.
The SPX chart is more bearish than bullish for Monday but signals suggest a bounce is likely but may not hold. All moving averages are above 6100 which is bullish for further advances.
SPX Stock Market Outlook review of Fri Oct 10 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and negative.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thu Oct 9 2025. On Fri Oct 10 2025 the down signal was confirmed with a strong plunge.
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Ultimate Oscillator: The Ultimate Oscillator is falling and nearing oversold.
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Slow Stochastic: The Slow Stochastic has a strong down signal.
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Relative Strength Index: The RSI signal is falling and oversold. Often a bounce can be expected with the RSI signal this low.
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| Rate of Change: The rate of change is falling and negative, signaling a potential bounce for today. 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 |
| 6775 is resistance |
| 6750 is resistance |
| 6715 is resistance |
| 6700 is resistance |
| 6675 is resistance |
| 6650 is resistance |
| 6625 is resistance |
| 6600 is resistance |
| 6590 is resistance |
| 6570 is resistance |
| 6535 is resistance |
| 6510 is resistance |
| 6500 is resistance |
| 6470 is resistance |
| 6450 is resistance |
| 6425 is support |
| 6400 is support |
| 6350 is support |
| 6325 is support |
| 6300 is support |
| 6250 is support |
| 6225 is support |
| 6200 is support |
| 6175 is support |
| 6150 is support |
| 6125 is support |
| 6100 is support |
Stock Market Outlook for Mon Oct 13 2025
Comments from President Trump on Sunday sent stocks into a strong pre-market rebound for Monday morning.
Technical indicators however are showing the plunge on Friday may take more than a few days to get stocks back to a bullish stance.
Despite this, Monday looks set to move higher and close higher, but the longer term for the week looks poorer for equities. That means on Monday if there is a rally, especially a strong rally, check existing positions and close or adjust as needed and raise cash levels for a move still lower later this week or next, before stocks attempt a stronger rebound.
Potential Economic and Political Market Moving Events
Monday:
Columbus Day
Thanksgiving holiday in Canada – no trading