Prior Trading Day Summary
On Tue Oct 6 2026 stocks continued the rally for a third day and set a new intraday high in both the SPX and NASDAQ.
The SPX ended the day up 45 points to close at 7819. Volume fell to 5.1 billion with 65% of all volume being traded higher. New 52 week lows lows fell to 133 but new 52 week highs hardly budged at 49. The SPX made a new intraday high of 7844.
The NASDAQ ended the day higher, up 122 points to 27,600 on 8.7 billion shares traded. By the close 49% of stocks were rising on the index. New lows fell to 225 and new 52 week highs jumped to 209. The index made a new intraday high of 27,722.
Let’s review the closing technical indicators from Tue Oct 6 2026 to see what they predict for Wed Oct 7 2026.
Stock Market Outlook: SPX Closing Chart For Tue Oct 6 2026
The index ended the day below the Upper Bollinger Band but above the 21 day moving average for a third straight day. This is bullish.
The closing candlestick is bullish but with a top shadow which usually indicates dips to start the day on Wednesday.
The 21 day moving average is rising and closed at 7679. This is bullish.
The 50 day moving average is rising and closed at 7673. This is bullish.
The 100 day moving average is rising and closed at 7527. This is bullish.
The 200 day moving average is rising and closed at 7267. This is bullish.
The Lower Bollinger Band is below the 50 day moving average and falling which is bullish. The Upper Bollinger Band is rising which is also bullish.
The SPX chart is more bullish that bearish and is signaling the rally will see dips but should end higher today. A large move higher though is not expected.
SPX Stock Market Outlook review of Tue Oct 6 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is rising and positive. This is bullish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on MonOct 5 2026. The up signal was confirmed by a stronger reading on Tue Oct 6 2026.
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Ultimate Oscillator: The Ultimate Oscillator is rising. This is bullish.
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Slow Stochastic: The Slow Stochastic has an up signal in place and is bullish. It is overbought.
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Relative Strength Index: The RSI signal is rising. This is bullish. It is overbought.
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| Rate of Change: The rate of change is rising, signaling that Wednesday 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 Wed Oct 7 2026
With the MACD technical indicator confirming the next move will be higher, a choppier day is expected after 3 days of the rally. Many stocks are overbought but with room to still advance.
For Wednesday investors get the latest FOMC minutes at 2:00. I am not expecting anything that will disrupt the general uptrend at present in those minutes.
Wed Oct 7 2026 will end higher but the gain will be more modest.
Potential Economic and Political Market Moving Events
Monday:
10:00 ISM Report on business services PMI for Sep was higher than estimated coming in at 58.8
Tuesday:
8:30 Trade Balance for Aug was worse than estimated coming in at -105.6 billion
Wednesday:
2:00 FOMC latest minutes
3:00 Consumer credit is estimated to fall to 15 billion from 18.1 billion prior