Please Remain Seated

Research evidence excerpt

Please Remain Seated

June 10, 2026 Please Remain Seated

Unwind May be Temporary, but We Still Expect More Turbulence

Jonathan Krinsky, CMT

WHAT YOU SHOULD KNOW: (332) 400-5152 jkrinsky@btig.comTECHNICAL There isn't much new happening today that we haven't discussed recently, but it's worth

throwing some numbers on the action. Since the SPX hit an all-time high last Tuesday

(June 2nd) of 7609, it has fallen ~4% to ~7300. Yet six sectors are green over that

span, with HC, Staples, REITs, and Fins each up 2% or more. Meanwhile, Tech is down

over 10%. This has essentially been a momentum unwind, with crowded positioning

in semis/AI being reduced while underweight areas like defensive/cyclicals are beingSTRATEGY

bought/covered. As we have stated previously, you can get positioning unwinds without

fundamental catalysts, but they usually don't last very long unless there are real

underlying changes. At this point our assumption is this is still a positioning unwind, not

a regime change, but we don't think it has fully run its course. As a result, we would

suggest you remain seated with your seat belts fastened, as we expect more near-term

turbulence.

■ Tech/Semis - Still Looking for 50 DMAs. Whether its QQQ, XLK, or SOXX, we think

tests of the rising 50 DMAs are still quite likely. The good news is that the slope of

the 50 DMAs are rising sharply, so every day that goes buy the downside becomes

less. The reaction to those tests will tell us if there needs to be a deeper correction.

■ High-Beta vs. Low-Vol is essentially the same as high vs. low momentum. Would at

least be looking for this ratio back to its 50 DMA.

■ Laggards More Room to Run. We have recently discussed the more constructive

charts for Healthcare and Financials, as well as REITs. None of those groups look