Weekend Report for Monday, October 27

Weekend Report for Monday, October 26, 2025

Bottom Line:

“Balance” is one of the two basic market conditions. Markets are always in one of these two states. It’s not always crystal clear, but when it is it prevents opportunity and allows for an if/then approach to trading.

Last weekend it was one of those “crystal clear” times. What occurred last week was classic Auction Market Principles in real time. Details in the video.

PDF: Weekend Report_2025_10_26
VIDEO: https://youtu.be/9LCloXb6_mM

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SPX

A break from Balance is typically immediately strong and relentless. Last week’s break was different, but the test on Wednesday stopped exactly where it had to stop to keep the bullish break alive. The SPX (and other indices) immediately resumed the bull trend on Thursday.

SPX

There is no “resistance” above Friday’s print high. The 7000 level seems to be talked about a lot, and could prove to be the next upside magnet. It’s only 2.7% away. The SPX (and other indices) remain “stretched” leaving them susceptible to some out-of-the-blue catalyst for more than a several hour “correction”.

NDX

Same. All US indices are up for the year. The SPX and NDX are far outperforming the others.

DOW

NYA

RSP

RUT

VIX dropped dramatically during the week. It will follow price – down if the rally continues. Be alert if the indices continue to rally and VIX simultaneously begins to creep up.

Internals

This perspective has not been helpful. That is a direct result of the concentration of the handful of stocks that have increasingly dominated the bull market, and especially so since the April low. It is notable that the 10-day MA of NYSE advancing issues broke above a level it had been unable to break since July. I don’t know how to interpret this. It could be bullish, or it could be indicating reaching an upper extreme.

If we were coming off a low like we had in April it would be unequivocally bullish, but we are making higher highs in a historic rally; no one can say we’re “oversold” by ANY measure.