Will Another Wave Of Selling Follow This AM's Countertrend Bounce?

Good Monday Morning, MPTraders!  June 8, 2026-- Pre-Market Update: 

-- The weekend breach of the Israel-Iran ceasefire by both parties puts geopolitics back on the front burner this AM. That said, the financial markets did not react violently (down in Equities or acutely up in Crude Oil), which suggests that for the time being, neither Israel nor Iran has decided to resume all-out war. 

And then there is President Trump, who issued the following statements this morning, and continues to provide investors and traders (certainly the algorithmic trading programs) a carrot stick for a peace deal that, at the very least, keeps the shorts and the algorithmic sell programs on edge... (Continued below the statements)...

(FinancialJuice)

What now?  The following series of chart views of ES, SPY, QQQ, NVDA, AVGO, and META (for starters) all argue in favor of the following scenario:

This AM's strength represents a nearest-term counter-trend bounce in the aftermath of Friday's 3%-4% plunge, which in English means that the power of Friday's decline likely has tailwinds that will press the indices and technology names to a lower low after the current bounce runs its course. Each of my attached charts is annotated with dotted lines to show my preferred near-term price path...

If, indeed, the Mag7 names were "assaulted" last Friday because they were 1) acutely overbought... 2) vulnerable to profit-taking... 3) and a reservoir of potential capital to fund the ginormous SpaceX IPO, then their near-term pattern setups indicate that another wave of selling is likely ahead of Friday's IPO... MJP