Prior Trading Day Summary
On Mon Oct 20 2025 investors focused on the upcoming week of earnings and left behind the banking and tariff issues.
The S&P closed up 71points to 6735 but on still lower volume of 4.7 billion shares. 79% of all stocks on the SPX were rising by the close.
The NASDAQ rose 310 points to close at 22,990 and is ready to move back above 23,000. 75% of all stocks on the index were rising by the close.
The technical indicators saw more strength build to the upside and the VIX fell over 12% to $18.23.
Lets review the closing technical indicators from Mon Oct 20 2025 to see what investors should expect on Tue Oct 21 2025.
Stock Market Outlook: SPX Closing Chart For Mon Oct 20 2025
The index closed below the Upper Bollinger Band but above the 21 day moving average. This is bullish.
The closing candlestick is signaling bullish for Tuesday.
The 21 day moving average is rising and closed at 6677 which is bullish.
The 50 day moving average is rising and closed at 6570 which is bullish.
The 100 day moving average is rising and closed at 6391 which is bullish.
The 200 day moving average is rising and closed at 6151 which is bullish.
The Lower Bollinger Band is back to the 50 day moving average which is bullish. The Upper Bollinger Band is turning higher which is bullish. The chance of a Bollinger Bands Squeeze is unlikely.
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 for Mon Oct 20 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and slightly negative.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Thu Oct 9 2025. On Monday the down signal lost more strength. We could see an upsignal this week from the MACD indicator.
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Ultimate Oscillator: The Ultimate Oscillator is falling.
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Slow Stochastic: The Slow Stochastic has an up signal in place for Tuesday.
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Relative Strength Index: The RSI signal is rising.
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| Rate of Change: The rate of change is rising. It is signaling a higher day on 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 21 2025
For Tue Oct 21 2025 the technical indicators are gaining strength to the upside except for the Ultimate Oscillator which is turning lower. We could see this indicator turn bullish on Tuesday or Wednesday if the index continues to climb.
The MACD 1index lost a large amount of its down signal. The outlook is for this technical indicator to turn bullish probably by Wednesday or Thursday this week.
The technical indicators are advising that investors should see a higher open and a higher close on Tuesday for the SPX.
Potential Economic and Political Market Moving Events
Monday:
10:00 Leading economic indicators for September are expected to rise to -0.3% from -0.5% prior. This data may not get released due to the government shutdown.
Tuesday:
9:00 Fed government Waller speech