Stock Index Divergence Expands as Key Indexes Set Early-October ’26 Peaks; DJIA Rallies.
10-10-26 – “Stock Indices rebounded in early-October after fulfilling downside projections as part of a DJIA decline from early-August into late-Sept ’26.
The Russell 2000 & S+P Midcap 400 concurred with the S+P Midcap opening the possibility for a future high in mid-Oct ’26…
This reinforces the growing divergence & disparity between these 6 primary indexes. The NQ-100 is at record, all-time highs while the S+P 500 spiked down to its weekly HLS (7675/ESZ) and then rallied, targeting new highs. In contrast, the Russell 2000 turned its weekly trend down…
On a broader basis, the Russell 2000 & S+P Midcap are steadily tracing out negative weekly 21 MAC reversal sequences. This is the first time the S+P Midcap has turned the weekly 21 MAC down since Feb 2025. As a lagging indicator, that signal projected a reactive rally… the DJIA could see a rebound to ~52,400 – 52,950 (weekly LHRs, monthly SPR, daily high & low, weekly 21 High MAC) before the next decline… that could take hold in late-Oct.
Stock indices have rallied after many fulfilled late-Sept ’26 cycle lows. The DJIA remains in an intra-month uptrend and could turn its daily trend up with a daily close above 51,765/DJIA.” TRADING INVOLVES SUBSTANTIAL RISK!
The DJIA peaked in early-August with other indexes peaking in mid-August – all projecting significant declines into late-Sept/early-Oct ’26! That was fulfilled and projected an early-October ’26 rebound. The weekly trends should provide additional clues regarding what to expect throughout 4Q 2026.
In contrast, the S+P 500 & NQ-100 surged to new all-time highs leading into early-October Cycle Progressions… setting the stage for a late-Oct ’26 sell-off.
How Does Plunge into Late-Sept ’26 Impact 4Q ’26 Outlook?
See current Weekly Re-Lay & INSIIDE Track publications for the most updated analysis.