Equity Clock

Stock Market Outlook for October 30, 2026

Looking to build a portfolio around Mid-Caps during the best six month timeframe for stocks.

*** 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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Stock Highlight:
iShares Russell Mid-Cap ETF (NYSE:IWR) Seasonal Chart	Optimal holding period from October 30th to February 8th Has been within a rising intermediate-term trend sine April 2025 and is currently curling higher from a short-term oversold low; performance relative to the market charting double-bottom support at the May low

SPDR S&P 400 Mid Cap Value ETF (NYSE:MDYV) Seasonal Chart

Invesco S&P MidCap 400 Revenue ETF (NYSE:RWK) Seasonal Chart

Air T, Inc. (NASD:AIRT) Seasonal Chart

Western Digital Corp. (NASD:WDC) Seasonal Chart

Bruker Corp. (NASD:BRKR) Seasonal Chart

Bausch Health Companies Inc. (TSE:BHC.TO) 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

Weakness in Technology and Communication Services was enough to act as a drag on large-cap benchmarks during the Thursday session following a sharply negative reaction to earnings from Alphabet (GOOGL).   The S&P 500 Index slipped by three-tenths of one percent, turning lower from downside gap resistance charted on October 22nd around 7730. Broader, a sideways range persists between 7620 and 7800, but we continue to scrutinize the risks that the head-and-shoulders setup on the hourly chart presents. The sloppiness of the tape in recent days and the concerns that the credit market is showing suggest continued vulnerability, despite the equity market being at a major turning point in the seasonal timeline from weakness to strength for the next six months.  20 and 50-day moving averages are no longer defining support and the 100-day moving average is the last line of defense before a more substantial correction is triggered.  Weakening support raises concerns for the health of stocks moving forward.  As noted in our recent chart books, there are segments following recent 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. 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

Today, in our Market Outlook to subscribers, we discuss the following:

• Volatility Index not yet showing a return to market stability
• Mid-Cap stocks
• The seasonal trade in Natural Gas
• Weekly Jobless Claims and the health of the labor market
• Additional Thoughts (Value over Growth, Communications Services sector, Bank Loan ETF)

Subscribers can look for this report in their inbox or by clicking on the following link and logging in: Market Outlook for October 30

Sentiment on Thursday, 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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