Prior Trading Day Summary
On Mon Oct 27 2025 stocks soared higher ahead of a big week for earnings, the Fed’s anticipated interest rate cut and positive news out of Asia and China for trade. Everything on Monday was lined up perfectly for stocks to break higher.
The SPX rose 83 points to close at 6875 for the best single day rally since Monday Oct 13 when the SPX soared 102 points. Volume rose by 200 million shares to 5.3 billion with 55% of all stocks rising by the close. The SPX made another new all-time high on Monday of 6877.
The NASDAQ rose 432 points to close at 23,637. It was the best single day since a 490 points rally on Oct 13. Volume was higher by 400 million shares to 11.1 billion. 53% of all stocks were rising by close. The NASDAQ made a new all-time high on Monday of 23658.
The VIX index closed lower at 15.79.
The Moving Average Convergence / Divergence technical indicator confirmed Friday’s up signal, on Monday at the close.
Lets review the closing technical indicators from Mon Oct 27 2025 to see if investors can keep the rally moving higher on Tuesday.
Stock Market Outlook: SPX Closing Chart For Mon Oct 27 2025
The index closed above the Upper Bollinger Band. This is a bullish and overbought signal.
The closing candlestick is bullish for Tuesday with a chance for a bit of a dip at the open. The candlestick indicates overbought.
The 21 day moving average is rising and closed at 6706 which is bullish.
The 50 day moving average is rising and closed at 6603 which is bullish.
The 100 day moving average is rising and closed at 6427 which is bullish.
The 200 day moving average is rising and closed at 6182 which is bullish.
The Lower Bollinger Band is below the 50 day moving average which is bullish. The Upper Bollinger Band is moving higher which is bullish.
The SPX chart is strongly bullish. All moving averages are above 6100 which is bullish for further advances.
SPX Stock Market Outlook review of Mon Oct 27 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive. It is at overbought levels.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Fri Oct 24 2025. On Monday the up signal was confirmed.
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Ultimate Oscillator: The Ultimate Oscillator is rising.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is overbought.
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Relative Strength Index: The RSI signal is rising and overbought.
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| Rate of Change: The rate of change is rising. It is signaling a higher close 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 |
| 6875 is resistance |
| 6850 is resistance |
| 6800 is resistance |
| 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 support |
| 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 28 2025
For Tuesday the technical indicators are signaling a higher day but with most also signaling overbought, I would not expect another day with an 80 point gain. There is a chance of an early morning dip but with the market strongly bullish any dip will find ready buyers. The day is set to end still higher as investors prepare for the Fed’s interest rate decision which is released Wednesday at 2:00 PM.
On Tuesday I am working with the developers on some changes to the website and tools. I do not know if I will be able to post trades until later in the day.
Potential Economic and Political Market Moving Events
Monday:
No reports will be released today due to the ongoing government shutdown.
Tuesday:
9:00 S&P Case-Shiller home price index
10:00 Consumer confidence