Prior Trading Day Summary
On Wed Oct 7 2026 rising treasury yields with the 10 year near 5.3%. Combine this with rising oil prices and stocks indexes at all-time highs and many investors decided to take some of their profits. Selling was not strong and by the close indexes were well off the early morning lows.
The SPX ended the day down 17 points to close at 7801. Volume rose to 5.2 billion with 74% of all volume being traded lower. New 52 week lows rose to 319 and new 52 week highs fell to just 22. The SPX made a new intraday high yesterday of 7844.
The NASDAQ ended the day lower losing 61 points to 27,538 on 7.5 billion shares traded a decline of 1.2 billion shares from Tuesday. Declining volume on a down day is a good signal for the bulls. By the close 60% of stocks were falling on the index. New lows jumped to 372 and new 52 week highs fell to 54. The index made a new intraday high of 27,722 on Tuesday.
Let’s review the closing technical indicators from Wed Oct 7 2026 to see what they predict for Thu Oct 8 2026.
Stock Market Outlook: SPX Closing Chart For Wed Oct 7 2026
The index ended the day below the Upper Bollinger Band but above the 21 day moving average for a fourth straight day. This is bullish.
The closing candlestick is bullish but with a bottom shadow which usually indicates dips to start the day on Thursday.
The 21 day moving average is rising and closed at 7685. This is bullish.
The 50 day moving average is rising and closed at 7680. This is bullish.
The 100 day moving average is rising and closed at 7532. This is bullish.
The 200 day moving average is rising and closed at 7272. This is bullish.
The Lower Bollinger Band is below the 50 day moving average and falling which is bullish. The Upper Bollinger Band is rising which is also bullish.
The SPX chart is more bullish that bearish and is signaling the rally will see dips but should end higher today. A large move higher though is not expected and dips could be deeper that we saw on Wednesday.
SPX Stock Market Outlook review of Wed Oct 7 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive. This is bullish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on MonOct 5 2026. The up signal was stronger on Wed Oct 7 2026.
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Ultimate Oscillator: The Ultimate Oscillator is rising. This is bullish.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is bullish. It is overbought.
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Relative Strength Index: The RSI signal is falling. This is bearish. It is overbought.
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| Rate of Change: The rate of change is rising, signaling that Thursday will end higher. 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 Thu Oct 8 2026
Despite rising bond yields, rising oil prices, concerns over interest rates and other geopolitical events, the index slipped on Wednesday but losses were minor and volumes saw no panic selling of any kind.
For Thursday the signals are pointing to a choppy day and dips could be deeper today than we saw on Wednesday but even a lower close today won’t change the present bullish outlook.
Thu Oct 8 2026 has a good chance to end the day flat to higher.
Potential Economic and Political Market Moving Events
Monday:
10:00 ISM Report on business services PMI for Sep was higher than estimated coming in at 58.8
Tuesday:
8:30 Trade Balance for Aug was worse than estimated coming in at -105.6 billion
Wednesday:
2:00 FOMC latest minutes showed an interest rate is likely this fall
3:00 Consumer credit was better than estimated coming in at 8.3 billion
Thursday:
8:30 Weekly Initial Unemployment Insurance Claims for Oct 3 are estimated at 200,000
10:00 Monthly Wholesale Trade for Aug is estimated to fall to 0.7% from 1.3% prior