The Stock Market Is Weaker Than It Looks — US Banks Signal Trouble
The stock market is showing increasing signs of weakness beneath the surface. New lows are dramatically outnumbering new highs in both Canada and the U.S., while recent buy signals in areas such as small caps, industrials, the TSX 60 and uranium have quickly reversed. The NASDAQ and Nvidia are also continuing lower following bearish reversal signals.
The banking sector is particularly concerning, with both Canadian and U.S. banks having peaked months ago and continuing to deteriorate. Technology stocks remain strong enough to support the major indices, but the broader market looks considerably weaker. The key takeaway is to remain patient, avoid acting on premature signals and wait for confirmation before making new commitments.
Stephen Whiteside
Thursday, October 8, 2026
