Stock Market Outlook for October 20, 2026
Caution warranted in stocks as market instability grows. Find out what we are doing to navigate this market turmoil.
*** 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.
MACOM Technology Solutions Holdings, Inc. (NASD:MTSI) Seasonal Chart
Coty Inc. (NYSE:COTY) Seasonal Chart
Ametek, Inc. (NYSE:AME) Seasonal Chart
Lennox Intl Inc. (NYSE:LII) Seasonal Chart
Honeywell International, Inc. (NASD:HON) 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
Traders bought into the tech weakness on Monday, lifting the growth sector and benchmarks heavy in this influence off of the floor from last week’s selloff. The S&P 500 Index recovered four-tenths of one percent, bouncing from the lower limit of the trading range that the benchmark has been in since August between 7620 and 7800. On Friday, the index broke below short-term rising trend channel support that had promoted the recent path of higher-highs and higher-lows in the past month. The benchmark is struggling around 20 and 50-day moving averages and the 100-day moving average remains a critical line in the sand. Weakening support raises concerns for the health of stocks moving forward. The market has reached the time of year when volatility starts to peak and roll over through the last couple of months of the year, thereby promoting strength in stocks, but the breakout in the VIX on Friday above declining trendline resistance provides the inkling that the instability that is leaching into the market may just be getting started. As noted in our chart books, there are segments following last week’s price action that we no longer want to be exposed to, but the market has provided rotation opportunities that allow us to maintain our overall equity exposure. More on that below in our subscriber report. Members 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.
Want to know which areas of the market to buy or sell? Our Weekly Chart Books have just been updated, providing a clear Accumulate, Avoid, or Neutral rating for currencies, cryptocurrencies, commodities, broad markets, and subsectors/industries of the market. Subscribers can login and click on the relevant links to access.
- Currencies
- Cryptocurrencies
- Commodities
- Major Benchmarks
- Sub-sectors / Industries
- ETFs: Bonds | Commodities | Equity Markets | Industries | Sectors
Today, in our Market Outlook to subscribers, we discuss the following:
- Our weekly chart books update, along with our list of all segments of the market to either Accumulate or Avoid
- Other Notes
- The action we are taking in the Super Simple Seasonal Portfolio
Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for October 20
Sentiment on Monday, as gauged by the put-call ratio, ended bullish at 0.87.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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