A Healthy Pullback — or the First Crack?

By Eli Gal Levy, Series 3 broker

After weeks of fresh all-time highs across SPX, SPXEW, DJI, COMP, this week handed us the largest one-day drop of the year in the NASDAQ. The blowout monthly jobs report did the work no one was expecting — yields spiked, the short end of the curve threatened to break containment, and traders used it as the excuse to take profits in the most crowded part of the market. The S&P 500 broke its 20-day moving average around 7,500 and is sitting below it. The next reference on the way down is the May low around 7,330 — and we are still above it. Above 7,320 this is a routine wobble inside an uptrend. Below 7,320 the conversation changes.

The damage was concentrated where the leadership has been. AMD was down more than 10% on the week. Micron was down 13%. Broadcom — the company whose lackluster guidance started this whole leg — dropped 20%. The PHLX Semiconductor Index pulled all the way back below its 20-day SMA, the same kind of test that brought buyers in around mid-May. Whether they show up again is the single most informative thing the chart can tell us next week. The VIX, which printed a four-month low of 15.18 the day before, snapped higher. Bitcoin is down roughly 20% on the week and traded below its February low (~$60,000) and below the 200-week SMA (~$62,000). The green on the day was confined to the most defensive parts of the tape — healthcare, staples, utilities. Healthcare was up on no real news; it was just under-owned relative to everything else everybody was holding.

There are real reasons to step back and respect both sides of this.

The bull side is the same one that has held this rally together. The economy is stronger than expected. Yields are rising in part for the right reason — growth is better than feared and that comes with some inflation. The AI capital expenditure cycle is enormous and broadening: the four biggest hyperscalers are on track to spend close to $800 billion on AI infrastructure this year and roughly $1.2 trillion next year. That is a food chain that runs far beyond the chips — data center builders, the equipment inside the data centers, the grid, the power. The backlogs are real. A pullback inside a CapEx cycle this big is exactly the kind of opportunity bulls have been waiting for to put a shopping list together — both within tech and in the parts of the market that had been left behind. From this side of the argument, what we just saw is the first healthy pullback since March 30. Nothing more.

The cautious side is also worth taking seriously. The leadership group was historically stretched coming into the week — large air underneath the chart, very crowded positioning, and very thin price discovery on the way up. Concentration is the part that should sit in the back of your mind: the ten most influential AI-related names have accounted for something like 40% of the S&P 500’s gains. That is the kind of concentration that has historically lined up with bubble-like environments. It does not always end badly — and there is no evidence yet that this one will — but it does raise the cost of being wrong. Add the supply side: Alphabet’s historic ~$85 billion equity raise to fund AI infrastructure, META reportedly preparing a raise, and a SpaceX IPO landing next Friday at around $1.75 trillion. That is real new supply hitting at a time when investors are also raising cash by selling winners to make room. Is that broad-based demand for opportunity, or is it exit liquidity? Both readings are fair.

Here is my bias, stated plainly. I follow the market — I do not lead it. The market sold off this week, but the larger trend has not broken. A short-term top usually behaves the same way: it sells off, builds back, and then either takes out the previous high or it doesn’t. If it does, the uptrend is still in charge and the dip-buyers were right. If it can’t, that is often the start of a more meaningful downturn, and the levels start mattering a lot. I am not going to call which one we get. I am going to let the levels tell me — SPX 7,330 on the downside, the prior high on the upside, SOX behavior at the 20-day SMA, and BTC behavior around the February low. The third option is finding support and consolidation.

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Cannon Edge — Your Daily Futures Snapshot for June 9th

Daily Levels for June 9th, 2026

Economic Reports

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

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Cannon Futures Weekly Letter

In Today’s Issue #1292

• The Week Ahead – CPI, WASDE,, Iran Uncertainty?
• Crypto Cup – $50,000 Total Prizes!!
• Futures 102 – The Daily Briefing – What The Pros Know Before Trading
• 10 Years Notes Chart & Outlook
• Cannon Edge – Your Futures trading Map for the week ahead!
• Trading Levels for Next Week
• Trading Reports for Next Week

What Futures Traders Should Watch This Week

Options

By John Thorpe, Senior Broker

The Week Ahead

The key futures market news for next week focuses on WASDE (grain markets to roil), inflation data (CPI and PPI) and Michigan consumer sentiment, all of which will strongly influence interest rate futures. Additionally, the SpaceX IPO roadshow kicks off, potentially becoming one of the largest public offerings in financial history. The investor roadshow for SpaceX is expected to shift market attention to the commercial space and tech sectors.

Options Workshop 201:

Inexpensive volatility structure: Long Straddle

Buying both a call and a put at the same strike price and expiration is called a long straddle.

On a daily-expiring futures option, a trader might do this when they expect a large move in the underlying futures contract but don’t know (or don’t want to bet on) the direction.

How it works

Suppose a futures contract is trading at 5,000 and you buy:

• A 5,000 call
• A 5,000 put

Both expire at the end of the day.

Your total cost is the combined premium paid for both options.

Profit scenario

At expiration:

• If futures rally sharply, the call gains more than the put loses.
• If futures fall sharply, the put gains more than the call loses.
• If futures stay near 5,000, both options lose value and can expire worthless.

Your maximum loss is the premium paid for both options.

Why use a daily expiration?

Daily expirations are often used around events that can cause large intraday moves, such as:

• Economic data releases (CPI, jobs report, Fed announcements)
• Earnings reports (for stock-index futures)
• Major geopolitical news
• Market-open volatility

A trader might think:

“I don’t know whether the market will jump up or crash down after the announcement, but I think it will move more than the options market is pricing in.”

The long straddle is a way to express that view.

Example

Assume:

• Futures at 5,000
• 5,000 call costs 10 points
• 5,000 put costs 10 points
• Total cost = 20 points

Break-even levels at expiration:

• Upside: 5,020
• Downside: 4,980

If futures finish at:

• 5,050 → call worth 50, put worth 0 → profit = 50 − 20 = 30
• 4,940 → put worth 60, call worth 0 → profit = 60 − 20 = 40
• 5,005 → call worth 5, put worth 0 → loss = 15

Other reasons

Besides directional uncertainty, traders may buy a straddle to:

• Trade expected volatility itself.
• Hedge a portfolio against a sudden move in either direction.
• Take advantage of perceived underpricing of short-dated options.
• Capture potential market reactions to scheduled announcements.

The key question is whether the actual move ends up being larger than the move implied by the option premiums. If the market doesn’t move enough before the daily expiration, the rapid time decay of same-day options can make the position lose money quickly.

Important: Trading commodity futures and options involves a substantial risk of loss.

The recommendations contained in this example are of opinion only and do not guarantee any profits.

Past performances are not necessarily indicative of future results.

We can trade either side of the market and prepare for volatility. On Monday, reach out to your broker for trading ideas. Bull or Bear, you really shouldn’t care.

Is the smoke clearing in the Mid-East and the markets have a renewed sense of confidence?

The energy and metals are swirling in the uncertainty of a lack of resolution in the attempted unwinding of the Iranian nuclear program.

Don’t let your guard down just yet, the fog continues, tune into the Sunday evening markets to witness reactions to the weekend news streams, manufactured or true.

Plan your trade and trade your plan!

Earnings Next Week:

·        Mon. Campbell Soup,

·        Tue. Cracker Barrel, Casey’s General Store

·        Wed. Oracle

·        Thu. Adobe Systems, Lennar

·        Fri.  Quiet

FED SPEECHES: (all times CDT)

·        Mon. Quiet

·        Tues. 8 day blackout period

·        Wed. Prior to Warsh’s first Public FOMC announcement

·        Thu.  Quiet

·        Fri.  Quiet

Econ Data: 

·        Mon. Consumer Inflation Expectations

·        Tue.  Balance of Trade, Redbook, Existing Home sales, Wholesale Inventories, API Crude Stock Change

·        Wed. CPI, ADP Employment Change Weekly, EIA Crude stock Change

·        Thu. PPI, Initial Jobless claims, EIA Nat Gas Stocks, WASDE

·        Fri. Mich. Consumer Sentiment, Baker Hughes Oil Rig Count

As a Cannon Trading client OR prospect, you’re invited to compete in the

Great Summer Escape Trading Competition featuring Coinbase Derivatives futures contracts!

From June 22 – July 2, trade in a simulated environment and compete for your share of $50,000 in prizes

Contracts include:

·    Etherium: Ether, nano Ether, nano Ether Perp-Style

·    Bitcoin: Bitcoin, nano Bitcoin, nano Bitcoin Perp-Style

·    Solana: Solana, nano Solana, nano Solana Perp-Style

·    XRP: XRP, nano XRP, nano XRP Perp-Style

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Futures 102: The Daily Briefing by Cannon

Every morning, the world’s biggest banks and macro strategists publish where markets are headed. The rest of the world waits for the headline.

That intelligence stays locked inside trading desks, institutional terminals, and private client portals — accessible only to the few who pay for the privilege, and even they only get what they pay for.

This briefing changes that (100% FREE on Cannon’s website!!). Every morning we scour the open web and aggregate everything that matters — pulling from publicly available sources so you never have to — and distill it into one clear, readable edition you can get through before your first coffee is finished.

No terminals. No subscriptions. No private portals. Just everything the market is saying, gathered in one place, every morning before the bell.

Read the Latest Briefing HERE and make sure to Bookmark this page!

Sept. 10 year treasury notes

The September 10 year treasury note chart satisfied its second downside PriceCount objective last month and corrected. At this point, if we can resume the break with new, sustainable lows, the chart could project a possible slide to the 106-04 area

The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk.

Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

FREE TRIAL TO QT MARKET Center – Access to analysis, tools, news & much more!

Highly recommended for HEDGERS!

Cannon Edge — Your Daily Futures Insight for the Next Trading Day! Cannon Edge for June 8st, 2026

Cannon Edge is our new daily feature designed to give traders a fast, actionable overview of key futures markets. Each post delivers:

• Current price and daily % change

• 30‑day and 52‑week highs/lows

• PROPRIETARY Short‑term and long‑term trend signals

• Coverage across equity indices, metals, energies, currencies, and ags

Whether you’re scanning for breakout setups, trend reversals, or just staying informed — Cannon Edge puts the data in your hands before the open.

Built for speed. Backed by insight. Powered by CQG.

Daily Levels for June 8th, 2026

Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:

www.mrci.com

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

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