Week of June 8-12, 2026: Navigating the Breakdown
The S&P had a rough week, dropping -148.8 points (-2.0%) from open to close and putting in some choppy, volatile action that kept traders on their toes. We opened Monday at 7417.38 and closed Friday at 7268.62, with the weekly range stretching 214.26 points from the high of 7490.88 to the low of 7232.62.
Monday started the week on a weak note, gapping down and grinding lower throughout the session. We opened at 7431.62, tried to push higher early with a high of 7446.88, but sellers stepped in and drove us down to 7390.88 before closing at 7405.88 for a -25.7 point loss. That early high at 7446.88 became our weekly high and immediate resistance.
Tuesday brought some relief with a decent bounce. After gapping down to open at 7329.88, we saw buyers emerge and push the market back up toward the previous day's levels, hitting 7405.0 and closing at 7376.38 for a +46.5 point recovery. It felt like we might be putting in a low, but that optimism was short-lived.
Wednesday was the real damage day. We gapped lower again to 7314.62, chopped around in a narrow range early, then completely fell apart in the afternoon. The selling accelerated into the close, taking us down to the week's low of 7232.62 before finishing at 7251.75 for a brutal -62.9 point drop. That Wednesday low became a critical level for the rest of the week.
The 214-point weekly range tells the story of elevated volatility and uncertainty. When you're seeing 60+ point daily moves in both directions, it's a market that's trying to find its footing but struggling to establish any sustained directional bias.
DT Algorithm Performance
Despite the choppy conditions, the DT algorithm had a solid week, posting 11 winners and 4 losers for +151.2 points of profit. The 79% win rate on our lifetime record of 61W/16L held steady, which is exactly what you want to see during volatile periods.
Monday's trade was clean and simple. We caught a long entry at 7461.75 during that early morning push and took profits at 7470.0 for +15.8 points. The algorithm correctly identified the temporary strength before the broader selloff took hold.
Tuesday was our busiest day with four trades. The standout was our first long entry at 7458.25, which we rode up to 7484.25 for a +52.2 point winner as the market bounced from the gap down. We gave some back with a stop loss on the next trade (-14.9 points), but followed up with two smaller winners that captured +9.5 and +14.8 points respectively as the algorithm stayed patient and picked its spots.
Wednesday's breakdown tested our risk management. We took two trades as the market tried to bounce from the selling, but one hit our stop for -15.1 points while the other managed a small +9.5 point gain. The algorithm correctly stayed defensive during the worst of the selling pressure.
Thursday showed the value of staying active even after big moves. We captured a strong +52.0 point winner on our first long entry at 7421.25, riding it up to 7447.25 as the market attempted to recover from Wednesday's damage. Two smaller winners followed (+9.0 and +9.2 points), before our final trade of the day hit the stop for -22.2 points as the rally faded.
Friday's action was mixed but ultimately profitable. We started with a quick +9.5 point winner, took a -19.4 point stop loss as the market rejected higher levels, then finished strong with a +32.1 point winner and a small +9.1 point gain on the final trade.
The key takeaway is how the algorithm managed risk during the volatility while still capturing meaningful moves. Four stop losses across 15 trades is exactly the kind of disciplined approach you need when markets are chopping around.
TF Algorithm
No TF trades triggered this week. The overnight conditions didn't align with our TF parameters, which is completely normal during periods of elevated intraday volatility when the market is working through technical levels.
Next Week Outlook
We're closing the week at 7268.62, roughly 36 points above the weekly low of 7232.62 but a significant 222 points below the weekly high. This positioning suggests we're still in a corrective phase with that Wednesday low serving as immediate support.
For the DT algorithm, I'll be watching how we react around that 7232.62 low. A break below opens up more downside, while a hold and bounce could set up some mean reversion opportunities back toward 7300-7320. The 214-point weekly range shows there's plenty of movement for the algorithm to work with.
The TF algorithm will be looking for any overnight gaps or extended moves that create the right setup conditions. If this selling pressure continues, we might see some overnight gaps that provide the kind of mean reversion setups TF is designed to capture.
Key levels to monitor: 7232.62 (weekly low/support), 7320 (midpoint resistance), and 7446.88 (weekly high/major resistance).
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