Technical analysis for 6th October 2026
The equity backdrop has improved again this morning, but an important contradiction remains: stocks are rallying while long-term bond yields are still climbing. The Nasdaq closed at a record yesterday, Asian equities are higher this morning and European futures are up around 0.5%. Brent has retreated to around $100, while expectations of an October Fed hike have collapsed to roughly 23% from 71% a week ago. Yet the US 10-year briefly reached 5.349%, its highest since 2002.
We got a decent bull Monday yesterday and some decent trades across the board off the back of it, and today has the hallmarks of a bear Tuesday with the market finally testing the 10590 resistance zone. Ergo this is a decent shorting level. If the bulls were to break above the 10600 level then I am looking for a test of the 10650 R3 area and possibly 10670 later this week. Prior to 10590 though keep an eye out for the 10561 R1 level if the bulls make an early break of the 30m 200ema at 10535.
Support wise, then I am looking at the daily pivot providing the best support at the 10506 level. If the bears were to break this then we will likely slide down to the S1 level at 10472, and another test of the Hull MA at 10440 below that.
I am more inclined to go with a rise and dip today and a bearish end to the session.
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