Prior Trading Day Summary
On Friday June 5 2026, stocks fell lead by a sharp decline in many high flying tech stocks thanks to a stronger Non-Farm Payroll Report on Friday which sent bond yields higher. It was a wild day for stocks as well as bonds which saw the indexes end at the lows of the day.
The SPX fell 200 points in what had to be a pullback that most analysts and investors had been expecting for some time. With many stocks overbought week after week the pullback was long overdue. The SPX closed at 7383 on moderate volume of 5.7 billion shares traded. 75% of the volume was traded to the downside and 68% of all stocks on the index were falling by the close. For the week the SPX was down 196 points.
The NASDAQ fell 1121 points to close at 25,709. Volume rose to 11.9 billion with 66% of shares being traded lower and 76% of stocks falling. For the week the NASDAQ was down 1263 points.
Let’s review the closing technical indicators from Fri Jun 5 2026 to see what they predict for Mon Jun 8 2026.
Stock Market Outlook: SPX Closing Chart For Fri Jun 5 2026
The index closed below the 21 day moving average and the Upper Bollinger Band. This is bearish.
The closing candlestick is bearish for Monday but also signals oversold. A bounce is likely today.
The 21 day moving average is rising and closed at 7472. This is bullish.
The 50 day moving average is rising and closed at 7155. This is bullish.
The 100 day moving average is rising and closed at 7069. Thit is bullish.
The 200 day moving average is rising and closed at 6833. This is bullish.
The Lower Bollinger Band is sideways which is bearish. The Upper Bollinger Band is turning lower which is also bearish. This could be the start of a Bollinger Bands Squeeze for this week.
The SPX chart is more bearish than bullish for June 8 but an oversold bounce is likely..
SPX Stock Market Outlook review of Fri Jun 5 2026
Stock Market Outlook: Technical Indicators Review
Momentum: Momentum is falling and negative. This is bearish.
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MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued a down signal on Tue May 19 2026. On Fri Jun 5 2026 the down signal gained a large amount of strength.
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Ultimate Oscillator: The Ultimate Oscillator is falling and oversold. A bounce is likely.
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Slow Stochastic: The Slow Stochastic has a down signal in place.
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Relative Strength Index: The RSI signal is falling sharply and oversold. A bounce is likely.
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| Rate of Change: The rate of change is falling signaling today will end lower. Settings: Rate Of Change is set for a 21 period. This indicator looks back 21 days and compares price action from the past to the present. With the Rate Of Change, prices are rising when signals are positive. Conversely, prices are falling when signals are negative. As an advance rises, the Rate Of Change signal should also rise higher, otherwise the rally is suspect. A decline should see the Rate Of Change fall into negative signals. The more negative the signals the stronger the decline. |
Stock Market Outlook: Support and Resistance Levels |
| 7600 is resistance |
| 7590 is resistance |
| 7570 is resistance |
| 7550 is resistance |
| 7500 is resistance |
| 7450 is resistance |
| 7425 is resistance |
| 7400 is resistance |
| 7370 is resistance |
| 7350 is resistance |
| 7300 is support |
| 7280 is support |
| 7250 is support |
| 7200 is support |
| 7175 is support |
| 7150 is support |
| 7125 is support |
| 7100 is support |
| 7050 is support |
| 7000 is support |
Stock Market Outlook for Mon Jun 8 2026
For months economists and analysts have been telling investors that the economy is slowing and unemployment rising but Friday’s May jobs report didn’t support that outlook. Instead it showed remarkable strength and strong job growth. This sent bond yields higher and stocks sold lower.
Almost every investor knew stocks had been overbought for weeks and a pullback was likely the higher the index moved. Friday’s better than expected jobs numbers were the impetus investors needed to take profits, which they did. Many stocks plunged as a result and the market is oversold. That means for Monday there is a good chance a bounce will occur but any bounce on Monday won’t hold. The index is positioned to move lower today.
Potential Economic and Political Market Moving Events
Monday:
no reports scheduled
Tuesday:
6:00 NFIB optimism index is estimated to rise to 96.1 from 95.9 prior
8:30 April trade balance is estimated to -56.0 billion, better than the last reading of -$60.3 billion
10:00 Existing home sales for May are estimated at 4.05 million, up from 4.02 million prior
10:00 Wholesale inventories for April are estimated at 0.5% versus 1.3% prior