- Moving the market
Stocks started the day on a stronger footing, with chip names leading the rebound after Friday’s brutal sell-off. Traders seemed eager to step back in, hoping the recent weakness was just a reset rather than the start of something bigger.
Micron, which has been a key driver of this latest bull run, jumped nearly 10% after getting hit hard on Friday. Nvidia and Broadcom also bounced back, helping lift sentiment across the tech space.
But the backdrop remains anything but calm. Fresh strikes by Iran over the weekend raised new concerns about whether the already fragile ceasefire can hold. The situation escalated after Iranian Parliament Speaker Ghalibaf accused the U.S. of violating agreements, pointing to actions like the naval blockade.
Tensions kept energy markets on edge. Oil prices moved higher after Israel launched what it described as a “large-scale strike on strategic defense systems” in response to Iranian attacks.
Despite the back-and-forth, President Trump said both sides are still pushing toward an immediate ceasefire and urged them to halt hostilities altogether.
Meanwhile, one analyst pointed out that the market might be running into a different kind of problem—its own success. After a strong comeback, lingering inflation risks are still hanging over investors’ heads and could limit how far this rally can go.
Looking ahead, it’s shaping up to be a big week. Inflation data will be front and center, along with the highly anticipated public debut of Elon Musk’s SpaceX. It’s expected to be one of the largest IPOs ever and could serve as a major test for the current AI-driven market optimism.
By the close, the S&P 500 and Nasdaq managed to recover a portion of Friday’s losses—more of a relief rally than a full recovery. Bond yields ticked higher, while the dollar slipped slightly, giving gold a lift after an earlier dip. Bitcoin also bounced back, testing the $64K level.
So now the big question: was this just a classic dead-cat bounce, or the start of a more durable move higher?
2. Current domestic “Buy” Cycle (effective 5/20/2025); International “Buy” Cycle (effective 5/8/25)
Our domestic bullish cycle that began on November 21, 2023, concluded on April 3, 2025, following a market downturn triggered by President Trump’s tariff policy announcement.
This development caused significant declines across major indexes and broader market indices. However, markets subsequently rebounded, culminating in a new domestic “Buy” signal taking effect May 20, 2025.
Concurrently, our International Trend Tracking Index (TTI) experienced parallel volatility. On April 4, 2025, it breached critical thresholds, prompting a “Sell” recommendation. This position reversed as global markets recovered, with the International TTI regaining sufficient momentum to issue a new “Buy” signal effective May 8, 2025.
3. Trend Tracking Indexes (TTIs)
The major indexes tried to stage a comeback today after Friday’s brutal sell-off, with traders hoping this wasn’t just a quick bounce but the start of something more sustainable on the upside.
By the close, only the S&P 500 and Nasdaq managed to stay in the green. Gold and copper joined the positive side as well, while silver basically went nowhere.
As for our TTIs, they didn’t do much—drifting slightly lower on the day.
This is how we closed 06/08/2026:
Domestic TTI: +6.59% above its M/A (prior close +6.70%)—Buy signal effective 5/20/25.
International TTI: +7.74% above its M/A (prior close +8.00%)—Buy signal effective 5/8/25.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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