Good morning,
Unfortunately, due to technical difficulties, I am unable to post a video this morning.
While Friday was a tough day for the stock market, it certainly wasn’t unexpected. At this point, it remains a one-day event. We need to see additional negative price action before we can confidently call it a trend.
The VIX spiked to 21.88 on Friday. As I’ve mentioned previously, I believed the VIX would need to break above this level before the overall tone of the market changed. Despite Friday’s move, the VIX Bull ETFs remain on sell signals.
As the VIX moved sharply higher, the broader market moved lower. Friday’s trading action generated a significant number of new sell signals across the major indexes. The TSX 60 and the Dow 30 managed to hold up reasonably well, while most other major indexes generated sell signals.
At the same time, futures are pointing higher on Monday morning.
There is absolutely nothing wrong with sitting on your hands this morning. If you’re overly bearish, you may want to use this rally to sell into strength. If you’re overly bullish, check your symbols in the pre-market just before the open and see if they have moved back into the Right Side Channel. If they have, I would still be inclined to sit on my hands and wait for additional confirmation. Patience is a perfectly reasonable strategy this morning.
Personally, I’ll likely be doing a combination of both.
As I write this, NASDAQ 100 Futures are up 469.80 points. I’ll be watching closely to see if the market can retrace more than 50% of Friday’s losses. For the NASDAQ 100, that level comes in at 730.87 points. So far, we’re nowhere near that number.
That’s all for now.
Stephen Whiteside
Monday, June 8, 2026
