NASDAQ Hits New High—But This Bearish Signal Is Concerning
Stock index futures are pointing lower for Wednesday’s open as bond prices decline and yields move higher. Although several markets generated new buy signals Tuesday, the outlook remains cautious. The S&P 500 and NASDAQ reached new highs, but the NASDAQ and Nvidia both produced weak bearish reversal signals. Market breadth also remains concerning, with U.S. stocks posting 214 new 52-week lows versus 93 new highs, while Canada recorded 48 new lows versus 25 new highs.
The key takeaway is to avoid acting prematurely on new buy signals. TheUpTrend recommends waiting for another close above the upper channel line before entering new positions, particularly given the pre-market weakness. The TSX 60 remains a potential bullish opportunity but has yet to break its pattern of lower highs and lower lows. Bonds, emerging-market bonds and junk bonds are weakening, while Bitcoin and Ethereum remain below important resistance levels.
Stephen Whiteside
Wednesday, October 7, 2026
