Stock Market Outlook: New Sell Signals Hit the Major Indexes
U.S. stock markets are attempting to rebound Friday morning after a sharp selloff on Thursday, with Nasdaq futures leading higher. However, the broader weekly picture remains weak: the S&P 500, Nasdaq 100 and Russell 2000 are all down more than 2% for the week, while new daily sell signals have appeared for the S&P 500, Russell 2000, micro caps and several other ETFs. The VIX remains on a weekly sell signal, while bond-market volatility and higher yields continue to be important areas to watch.
There are significant differences beneath the market averages. Financial stocks and major retailers such as Walmart and Costco remain under pressure, while energy, gold stocks and cryptocurrency-related investments have been strong. Bitcoin has gained more than 15% this week, gold stocks are up more than 10%, and crude oil is up more than 5%. The TSX is being weighed down by financials but supported by energy and gold stocks. Overall, Friday’s early strength has not yet changed the developing short-term weakness in the major U.S. indexes.
Stephen Whiteside
Friday, August 21, 2026
