Below are highlights from the NDW Morning Update Video for the morning of 10/5/2026.
Below are highlights from the NDW Morning Update Video for the morning of 10/5/2026. Access the video on the NDW Morning Update Video page.
- U.S. equity indices rebounded Friday (10/2) after the jobs report came in lower than expected, spurring a notable decrease in the chances for additional rate increases through the end of the year. The Nasdaq Composite (NASD) and Nasdaq-100 (NDX) were both up over 1% on 10/2, bringing each back to positive for the week, up 45 and 65 basis points. NDX rallied above 31000 to mark a new all-time chart high on 10/2, while additional indices reversed in Xs. The Russell 2000 Index (RUT) shifted back into Xs on 10/2 after seeing a negative trend change on 10/1.
- Though the jobs report led investors to perceive there may be a change in the Fed’s trajectory for interest rates through the remainder of 2026, the U.S. Treasury 10-Year Yield Index (TNX) continues to sit at 5.3% on the chart following Friday’s trading and the iShares U.S. Core Bond ETF (AGG) reside at recent lows.
- This week’s trading begins with short-term indicators sitting at or near chart lows from April 2025. The NYSE High Low Index (^NYSEHILO), which measures the percentage of stocks making 52-week highs relative to those making 52-week high and lows, sits on the verge of falling into single digits for the first time since late 2023. Additionally, the weekly distribution for the NYSE (^WDNYSE), which measures the average weekly distribution reading (overbought/oversold level), has fallen further into oversold territory at -38% and is on the threshold of highly oversold territory. Notable drops below -40% denote highly oversold territory on the ^WD indicator and the last two times the ^WDNYSE fell below the highly oversold threshold was in April 2025 and late 2023. It is worth noting that, while the (^WDNDX) measures just roughly 100 stocks, the indicator maintains a higher reading at -8% on the chart, nowhere near April 2025 lows.
- Q3 earnings season will kick off this week with the likes of Pepsi (PEP) and Delta (DAL) reporting on Thursday (10/8) and Friday (10/9). Chart highlights of both are below.
- Pepsi Co. (PEP) – Last week’s trading saw the 1 for 5’er fall to $126, dropping below the April 2025 chart low and marking the lowest chart level since the first half of 2020. This marks the most oversold level for PEP since late 2024, and given the low technical attribute, holders may utilize any potential rebound from these levels as an exit opportunity.
- Delta Air Lines (DAL) – Friday’s (10/2) trading led to a third buy signal with a double top break at $86 and to penetrate the bearish resistance line, flipping the trend back to positive. The trend change increases DAL up to a 4 for 5’er and places the stock back above the middle of the 10-week trading band. From here, support has developed in the $81 to $82 range, while additional sits in the $76 to $77 range.
