Prior Trading Day Summary
On Monday stocks attempted a bounce. Neither the SPX or the NASDAQ were convincingly higher and the stats were not overly bullish.
The SPX closed up 31 points on low volume of 4.6 billion shares traded. Of those shares 65% were being traded on declining stocks. By the close only 34% of stocks were high. New 52 week lows rose to 157 and new highs fell to 34. Overall it was not a convincing move.
The NASDAQ was just a bit better with a gain of 290 points which is 50% of what was lost on Friday. 50% is typical for a bounce. Volume was poor at 7.9 billion and new lows were 462 versus 41 new highs. Up volume was 52% and 45% of stocks were rising by the close.
Overall a bounce was expected but neither index put on much of a performance for investors. Many investors are still in a wait and “prove me” mentality.
Let’s review the closing technical indicators from Mon Oct 19 2026 to see what they predict for Tue Oct 20 2026.
Stock Market Outlook: SPX Closing Chart For Mon Oct 19 2026
The index ended the day below the Upper Bollinger Band and below the 21 and 50 day moving averages. This is bearish.
The closing candlestick is bearish for Tuesday with a top shadow which often signals dips today could be deeper than anticipated.
The 21 day moving average is rising and closed at 7736. This is bullish.
The 50 day moving average is falling and closed at 7705. This is bearish.
The 100 day moving average is rising and closed at 7564. This is bullish.
The 200 day moving average is rising and closed at 7308. This is bullish.
The Lower Bollinger Band is below the 21 and 50 day moving average and sitting at the closing for Monday. This is bearish. The Upper Bollinger Band is falling which is bearish.
The SPX chart is more bearish than bullish for Tuesday. Dips could happen and might be deeper.
SPX Stock Market Outlook review of Mon Oct 19 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 Mon Oct 19 2026.
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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 bearish.
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Relative Strength Index: The RSI signal is rising which is bullish.
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| Rate of Change: The rate of change is rising, signaling that Tuesday 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 Tue Oct 20 2026
For Tue Oct 20 2026 the technical indicators are heavily biased to the bearish side but two indicators are pointing to a possible bounce again today. Some of that may depend on earnings due out this morning from GE Aerospace Stock (GE) and 3M Company Stock (MMM). If they beat estimates we might see stocks try to build some strength for a second day. Just about every investor expected a bounce on Monday. The question now will be whether that bounce has any staying power. According to the technical indicators it is questionable as the signals look like the index wants to move lower to find better support.
Economically builder confidence fell to levels not seen since 2012. Today we also get housing starts and pending home sales both of which are estimated to be worse than estimated.
Potential Economic and Political Market Moving Events
Monday:
10:00 NAHB Housing Market Index for Oct is estimated to slip to 31 from 32 prior – this is bearish
Tuesday:
8:30 Housing Starts are estimated at 1.3 million for Sep unchanged from August
10:00 Pending home sales month over month are estimated at -0.4% down from 0.3% prior