Equity Clock

Stock Market Outlook for October 28, 2026

The best time of year for stocks has arrived.

*** 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:

Industrial Select Sector SPDR Fund (NYSE:XLI) Seasonal Chart

Optimal holding period from October 28th to March 10th The intermediate-term trend remains positive, characterized by higher-highs and higher-lows; the present test of rising trendline support sets up the ideal risk-reward for normal end of year strength Industrials are the strongest segment of the market in November and the fundamental order trends support the strength in this pro-cyclcical play.

Vanguard Small-Cap Growth ETF (NYSE:VBK) Seasonal Chart

Nutanix, Inc. (NASD:NTNX) Seasonal Chart

Celestica, Inc. (TSE:CLS.TO) Seasonal Chart

Canadian Life Companies Split Corp. (TSE:LFE.TO) Seasonal Chart

Brinker Intl, Inc. (NYSE:EAT) Seasonal Chart

AbbVie Inc. (NYSE:ABBV) 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

Further dip buying in the Technology sector ahead of earnings provided the fuel to elevate the broader market for a second day.   The S&P 500 Index gained six-tenths of one percent, reaching back to the midpoint of the range that the benchmark has been in since August between 7620 and 7800. Downside gap resistance charted on October 22nd around 7730 (tested at the highs of the day) remains one to watch as a rejection here would increase the likelihood that the head-and-shoulders pattern on the hourly chart is fulfilled.  A breakdown below the neckline of the setup, at the lower limit of the span, would propose a downside target of 7400, or back to the July lows. 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:

• US Durable Goods Orders and the investment implications within
• Start of the Best Six Months for stocks
• Equity Market Performance around the Mid-Term Election
• Mid-Term to Pre-Election year Six Month tendency
• Dates alone do not dictate market performance
• 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 28

Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.89.

Seasonal charts of companies reporting earnings today:

S&P 500 Index

TSE Composite

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