NextOptions.com Market Outlook for 6/8/2026

Bears Make an Appearance 

The stock market ended the week with heavy losses following a much stronger-than-expected jobs report and a spike in Treasury yields. There was some strength on the open but the first layers of support for the major indexes easily came into play by the end of the session.

The pullback wasn’t too much of a surprise as the market entered the week in overbought and elevated territory. The biggest concern for Wall Street and the bulls was the surge in volatility on Friday.  

The Nasdaq traded down to 25,648 before settling at 25,709 (-4.2%). Shaky support at 25,750 failed to hold. Resistance is at 26,750.

The S&P 500 ended at 7,383 (-2.6%) with the low at 7,368. New support at 7,400 failed to hold. Resistance is at 7,500.

The Dow kissed a low of 50,786 while finishing at 50,872 (-1.4%). Fresh support at 50,500 held. Undefined resistance is at 51,750 with Friday’s all-time top at 51,665.

Earnings and Economic News 

Before the open: FuelCell Energy (FCEL), Campbell Soup (CPB), Duluth Holdings (DLTH)

After the close: Vail Resorts (MTN), Mission Produce (AVO), Mama’s Creations (MAMA)

Economic News

None

Technical Outlook and Market Thoughts 

For the week, the Nasdaq sank 4.7% while the S&P 500 and the Russell tanked 3%. The Dow held up well as it fell just 165 points. Year-to-date, the Nasdaq is still up 11% and the S&P is higher by 8%. The Dow is up 5% and the Russell has jumped 15% this year.

The S&P had its nine-week winning streak snapped while falling out of its uptrend channel on Wednesday along with the Nasdaq. Both indexes fell just below their first waves of support.

The recently readjusted uptrend channels for the major indexes off the March 30th lows are showing a possible near-term market top with the Russell 2000 also falling out of its uptrend channel on Friday. The Dow, however, held its uptrend channel and also the first wave of support. 

We often talk about stretch and how multiple closes below support (or above resistance) are need to possible confirm price action. One day certainly doesn’t make a trend but the damage was severe enough that Monday’s session is a must win for the bulls.

The Nasdaq kissed a low of 25,648 on Friday. Support at 25,750 failed to hold with back help at 25,250. Closes below the latter gets 24,750-24,500 and the 50-day moving average in focus.

Fresh resistance is at 26,750 and our Price Target from mid-May. We said there was near-term upside to 28,000-28,250 on continued closes above 27,000. Monday’s all-time high hit 27,190 before Wednesday’s close back below this level. 

The S&P 500 bottomed at 7,368 with key support at 7,400 failing to hold. We have been highlighting 7,225 as the second wave of support and it’s now in focus. Closes below this level gets 7,150-7,100 and the 50-day moving average back on the map.
 

We predicted on May 15th strength towards 7,600-7,750 with Tuesday’s lifetime high smacking 7,620. This bulls need to recover 7,500 to regain some momentum.

The Russell hit a fresh all-time high at 2,943 on Thursday with our April 17th upside targets at 2,900-3,000. This area was nearly split. RSI on the Russell hit 46 in May before a bounce and closed at 48 on Friday. A bounce on Monday remains to be seen.

Fresh support is at 2,800 with additional help at 2,750-2,725 and the 50-day moving average. If selling pressure persists, a close below these levels would suggest risk down to 2,675.

The Dow tagged an all-time high of 51,665 with undefined resistance at 51,500-52,000 getting cleared and holding on Thursday. We said there was blue-sky territory towards 53,000 from our April 17th notes on closes above 50,500 and the previous February 10th all-time peak at 50,512. 

These aforementioned price levels are still in play for the blue-chips as long as key support at 50,000 holds. Closes below this level and out of the uptrend channel would be slightly bearish for weakness down to 49,250-49,000 and the 50-day moving average.

The S&P 500 Volatility Index (VIX) skyrocketed 40% on Friday while reaching a peak of 21.57. This represented the first close above 20 since April 8th with that intraday top at 22.17. Closes above 22-24 would be an ongoing bearish signal for the market with upside towards 30-31.50.

The bulls need to get the VIX back below 20-17.50 to start the week and levels that need to hold into Friday’s close. The past two 40+% intraday surges in the VIX on March 9th and last October 17th were followed by a lower VIX the following session and lower lows afterwards.

The relative strength index (RSI) levels for the Nasdaq, S&P 500 and Russell all settled below 50 on Friday. The Dow’s closed at 57. If RSI levels fall below 40 and 50 for all of the major indexes, dips to 30 and below are likely a given, and would confirm lower lows for the market.

We said there could still be some market upside to start last week, but that our near-term outlook had turned slightly cautious over the next week, or so, as the bounce off the March 30th lows seemed excessive and driven by the algorithms. 

Monday will be an important session and could set the tone if we continue to look at bullish setups, or if we start adding bearish Alerts to the portfolio. We always say calling market tops and bottoms is never easy and that daily homework is needed. 

Obviously, some of our bullish Alerts took hits on Friday but we shielded some risk as we went longer-term with our newer Alerts. We also kept our premiums light as most Alerts were in the 30-50 cent range and we still like all of them.

For the year, the Track Record is at 29-6 (83% win rate) for our Velocity Options directional Alerts with EIGHT triple-digit winners: BlackBerry (BB) call options hit for 413% last week while Stratasys (SSYS) call options were a 131% banger.

Our other triple-digit winners for the year include: GRPN calls 169%, IRDM calls 120%; KEY call options 107%; VIAV calls 271% and 319%; and BCRX calls 100%. More importantly, we always try to have more triple-digit winners than losers with some winners clearing 200%, 300%, and even 400%. This is like having two, three, and four triple-digit winners on one trade if you really think about it. 

Our covered call portfolio (Real Wealth Income Alerts) has now jumped to 14-0 and we nearly had another winner on Friday. We do have a Stop Limit in place (on SNAP) to protect a small profit in case lower lows come into play. We can also sell call options this week to lower our cost basis in other covered call open Alerts.

We could have New directional Alerts this week if the bears get aggressive and backup support levels start to crack. Don’t forget to signup for Text Alerts if you haven’t done so already.

Futures are showing a mixed open for Monday morning. Dow futures are down 138 and the Nasdaq futures are higher by 122 points as we head to press. S&P futures are adding 5 ticks and the Russell futures are up 3 points.