Stock Market Outlook for October 8, 2026
The market has become highly sensitive to the moves in the bond market, but shifting influences in energy prices are helping to alleviate some of the pressures for interest rates.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
Stocks Entering Period of Seasonal Strength Today:
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Ternium SA (NYSE:TX) Seasonal Chart
WisdomTree U.S. Value Fund (AMEX:WTV) Seasonal Chart
Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered is believed to be accurate, but is not guaranteed.
The Markets
Fresh multi-decade highs in the cost of borrowing sent a shudder through the market on Wednesday. The S&P 500 Index slipped by two-tenths of one percent, gyrating around the upper limit of the range that the benchmark has been in since August between 7620 and 7800; previous resistance continues to be looked to as support. The upper bound (7800) has formed the basis of the neckline to a head-and-shoulders pattern, a bullish setup that could see a resolution towards 8000. Following the mid-September bounce from the 100-day moving average (7575), recent days have seen as successful test of the 50-day moving average (7680), a testament to the support that these variable hurdles have been providing to the short and intermediate-term trends. While beyond what has historically been the weakest two-week stretch of the year at the end of September, volatility in the market tends to remain heightened into the month of October, therefore caution has been appropriate, but we have been pushing back against the negativity that is typical for this timeframe (see our September 18th report). We continue to examine what may be the appropriate stance in equity positioning for the month of October, but we did start to de-risk recently in our Super Simple Seasonal Portfolio (trimming our commodity/oil exposure). Subscribers can stay on top of our thinking and what we are watching in our regular reports, as well as view what we are targeting in our list of market segments to either Accumulate or Avoid.
Today, in our Market Outlook to subscribers, we discuss the following:
- Dollar and Rates
- Price of Oil and its recent divergence from the path of interest rates
- High Yield Spreads
- Energy commodity supply and demand
- Energy stocks
- Additional Thoughts
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for October 8
Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.84.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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