Prior Trading Day Summary
On Tue Oct 7 2025 the rally took a breather as tech stocks pulled back along with bank stocks.
The S&P gave back 25 points to end the day at 6714. Volume was 5.6 billion shares traded with 68% of the volume moving lower. By the close 66% of all stocks on the index were lower.
The NASDAQ fell 153 points to end the day at 22,788. Volume was 10.8 billion shares with 52% of the volume trading lower and 66% of all stocks falling by the close, matching the S&P percentage of stocks falling .
With many analysts warning investors that stocks are overbought and overvalued, weakness on Tuesday was not unusual and does not signal a larger downturn is coming.
Lets review the closing technical indicators from Tue Oct 7 2025 to see what is predicted for Wed Oct 8 2025 for stocks.
Stock Market Outlook: SPX Closing Chart For Tue Oct 7 2025
The index closed slightly lower, just below the Upper Bollinger Band and above the 21 day moving average. This is still bullish.
The closing candlestick is mixed with two short shadows which is a warning that investors could see some selling pressure again on Wednesday, The candlestick is bearish.
The 21 day moving average is rising and closed at 6643 which is bullish.
The 50 day moving average is rising and closed at 6510 which is bullish.
The 100 day moving average is rising and closed at 6336 which is bullish.
The 200 day moving average is rising and closed at 6103 which is bullish.
The Lower Bollinger Band is above the 50 day moving average which is bullish. The Upper Bollinger Band is turnng sideways which is bearish.
The SPX chart is more bullish than bearish for Wednesday but warns another down day may occur. All moving averages are above 6100 which is bullish for further advances.
SPX Stock Market Outlook review of Tue Oct 7 2025
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and positive.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Wed Oct 1 2025. On Tue Oct 7 2025 the up signal was almost gone.
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Ultimate Oscillator: The Ultimate Oscillator is falling.
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Slow Stochastic: The Slow Stochastic has a down signal in place.
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Relative Strength Index: The RSI signal is falling.
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| Rate of Change: The rate of change is falling, signaling a lower close for today. 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 |
| 6535 is resistance |
| 6510 is resistance |
| 6500 is resistance |
| 6470 is resistance |
| 6450 is resistance |
| 6425 is resistance |
| 6400 is support |
| 6350 is support |
| 6325 is support |
| 6300 is support |
| 6250 is support |
| 6225 is support |
| 6200 is support |
| 6175 is support |
| 6150 is support |
| 6125 is support |
| 6100 is support |
Stock Market Outlook for Wed Oct 8 2025
For Wednesday the technical indicators have losst some of the rally. Weakness is entering the technical tools. The MACD technical indicator is on the verge of issuing a down signal on Wednesday.
Today we get the latest Fed minutes on their September FOMC meeting and further background on the September rate cut. This may not occur due to the government shutdown..
Overall the technical indicators are advising that dips are likely again today with a lower close.
Potential Economic and Political Market Moving Events
Monday:
10:00 No economic reports
Tuesday:
8:30 Trade deficit was not released due to the government shutdown
3:00 Consumer credit was not accurate on Tuesday.
Wednesday:
2:00 Minutes of Fed’s September FOMC meeting