Prior Trading Day Summary
On Mon Oct 26 2026 stocks staged a rebound and attempted a bounce. The SPX bounce made it to the 50 day moving average but then closed back below it, off the day’s highs. Market breadth on the SPX was poor.
The SPX rose 53 points to close at 7676. volume was 5.9 billion which was 800 million more than Friday’s volume but only 41% of the volume was being traded higher.
The NASDAQ rose 214 points to close at 26169 on 7.7 billion shares which was up 900 million shares from Friday. New lows though were 432 and 45% of all stocks were falling by the close.
Overall the numbers continue to show investors are cautious. Let’s review the closing technical indicators from Mon Oct 26 2026 to see what they predict for Tue Oct 27 2026.
Stock Market Outlook: SPX Closing Chart For Mon Oct 26 2026
The index ended the day below the Upper Bollinger Band and the 21 and 50 day moving averages. It closed above the Lower Bollinger Band. This is still bearish.
The closing candlestick is bearish for Tuesday with a top shadow which signals a possible second bounce attempt for today.
The 21 day moving average is falling and closed at 7725. This is bearish.
The 50 day moving average is falling and closed at 7697. This is bearish.
The 100 day moving average is rising and closed at 7576. This is bullish.
The 200 day moving average is rising and closed at 7327. This is bullish.
The Lower Bollinger Band is below the 21 and 50 day moving average and falling. This is bullish for stocks. The Upper Bollinger Band is sideways which is neutral.
The SPX chart is more bearish than bullish for Tueday.
SPX Stock Market Outlook review of Mon Oct 26 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising 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 slightly weaker on Mon Oct 26 2026.
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Ultimate Oscillator: The Ultimate Oscillator is rising which is bullish.
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Slow Stochastic: The Slow Stochastic has a down signal in place and is signaling lower. It is near oversold.
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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 27 2026
On Monday market breadth was still poor on both indexes. Investors remain cautious but there are many big cap stocks with earnings due out this week which could jump-start a rally.
On Tuesday dips are probably still opportunities although tech names look weak for Tuesday.
Potential Economic and Political Market Moving Events
Monday:
No events
Tuesday:
8:30 Durable Goods for Sep are estimated to rise 1.7%
10:00 New home sales for Sep are estimated to fall to 653,000 from 684,000 prior