Weekend Report for Monday, June 1

Weekend Report for Monday, June 1, 2026

PDF: Weekend Report_2026_06_01
VIDEO: https://youtu.be/YTEh7duhXyc

Bottom Line:

U.S. indices continue to be extraordinarily bid. Ranges continue to be abnormally vertical. I have been saying for weeks that I expected a more two-sided market to come into play. That really hasn’t come to pass, so I’m just watching this with you. I have been trading for 40 years. I’ve seen vertical moves up but this one is starting to break a lot of records of previous vertical moves.

This will end. However, there is not going to be a bell-ringing moment when we can all say, “THAT’S IT!”, and we can gracefully pile into shorts and sit back and watch the market move straight down. When the indices (all of them) close below the previous cash session low, we will have a very early, preliminary signal something might be developing to the downside.

Follow the short-term KRAs.

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Internals

No change: The 10-day MA of NYSE advancing issues is diverging rather dramatically against the higher highs in the SPX and NDX. This is a “blunt instrument” but it merits notice.