Stock Market Outlook for October 14, 2026
Evidence of upside exhaustion in the broad health care sector hints of the need to be selective in this group.
*** 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:
Subscribers Click on the relevant link to view the full profile. Not a subscriber? Signup here.
iShares S&P U.S. Mid-Cap Index ETF (TSE:XMC.TO) Seasonal Chart
The Simply Good Foods Co. (NASD:SMPL) Seasonal Chart
Cameco Corp. (NYSE:CCJ) Seasonal Chart
Wesco Intl, Inc. (NYSE:WCC) Seasonal Chart
Cracker Barrel Old Country Store, Inc. (NASD:CBRL) Seasonal Chart
BMO Equal Weight U.S. Banks Hedged to CAD Index ETF (TSE:ZUB.TO) Seasonal Chart
Cardinal Health, Inc. (NYSE:CAH) 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
Stocks closed mixed for a second day as reaction to earnings and further rotation away from technology (semiconductors, memory) kept major benchmarks stalled. The S&P 500 Index ended essentially unchanged, still gyrating around the upper limit of the range that the benchmark had been in since August between 7620 and 7800; very early evidence is being observed that this previous level of resistance is poised to act 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. An ultra-short-term trend of higher-highs and higher-lows can be picked out, bound by a an approximately 200-point rising trading range that currently derives its lower limit at 7685. The daily chart shows support at the 50 and 100-day moving averages, a violation of which would be required to deem a shift of trajectory. 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 remainder of the month of October, but we have not received the cues to broadly de-risk in portfolios, yet. 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:
- Pharmaceutical stocks and the upside exhaustion in the health care sector
- Health Care Providers
- US Existing Home Sales and what the disconnect between supply and demand suggests for the path of home prices ahead
- 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 14
Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.82.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
