Prior Trading Day Summary
On Monday stocks bounced as anticipated following Friday’s market plunge. Part of the pop was helped by news of a deal between Broadcom and OpenAI which once again brought investor focus back onto the chip stocks. The chance of the markets closing lower on Monday was wiped out by that news as investors piled back into tech names they had sold just one trading day earlier.
On Tuesday before the open we get the start of bank earnings. That will be the dominant factor for stocks on Tuesday, especially in the morning.
The S&P rose 182 points, recovering 56% of Friday’s drop. Volume was lower at 5.4 billion shares but 84% of all trades were advancing and 75% of all stocks were rising.
The NASDAQ rose 490 points to end the day at 22,694 and recovering 59% of Friday’s drop. Volume was 9.3 billion shares a drop of 2.9 billion shares from Friday. 72% of all stocks were rising on Monday.
Lets review the closing technical indicators from Mon Oct 13 2025 to see whether the rally can continue Tue Oct 14 2025.
Stock Market Outlook: SPX Closing Chart For Fri Oct 10 2025
The index closed below the Upper Bollinger Band andjust below the 21 day moving average. This is bearish.
The closing candlestick is signaling that Monday was an oversold bounce. There is a shadow on the candlestick which signals the chance of a dip on Tuesday.
The 21 day moving average is rising and closed at 6666 which is bullish.
The 50 day moving average is rising and closed at 6538 which is bullish.
The 100 day moving average is rising and closed at 6362 which is bullish.
The 200 day moving average is rising and closed at 6125 which is bullish.
The Lower Bollinger Band is above the 50 day moving average and is moving sideways which is neutral. The Upper Bollinger Band is turning sideways which is neutral.
The SPX chart is more bullish than bearish for Tuesday. All moving averages are above 6100 which is bullish for further advances.
SPX Stock Market Outlook review of Mon Oct 13 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 Mon Oct 13 2025 the down signal gained more strength.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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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 rising from oversold.
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| Rate of Change: The rate of change is rising and positive, signaling a potential higher day for Tuesday. 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 |
| 6550 is support |
| 6500 is support |
| 6450 is support |
| 6425 is support |
| 6400 is support |
| 6350 is support |
| 6325 is support |
| 6300 is support |
| 6250 is support |
| 6225 is support |
| 6200 is support |
Stock Market Outlook for Tue Oct 14 2025
Following the bounce today, three new support levels have been added to the SPX outlook. They are the 6450, 6500 and 6550 valuations.
Stocks returned to a bullish outlook on Monday as they rallied hard in a broad advance. For Tuesday, we get bank earnings to start the next quarterly season bank earnings. I am expecting better than estimated results and a higher close.
While I expect a higher close on Tuesday, most of the technical indicators are advising that Monday was just a bounce and further downside is expected. However we get bank earnings today and that should support the index for moving and closing higher today.
Potential Economic and Political Market Moving Events
Monday:
Columbus Day
Thanksgiving holiday in Canada – no trading
Tuesday:
6:00 NFIB optimism index