Wednesday was another difficult day for stock investors. The tech heavy Nasdaq and Nasdaq 100 (QQQ) have rapidly rolled over into pullback territory (-5%, -10%), while the S&P 500 is very close, with a six-day loss of 4.5%. For the most past, intraday rallies continue to be used for raising cash -- and that's not a good look for the stock market. On the flipside, the S&P Small Cap 600 has barely budged from its June 4 all-time closing high, while the S&P MidCap 400 has given up only a bit over 2% from its all-time high.

Union Pacific Corp. provides rail transportation services in North America. It has approximately 33,000 route miles and transports agricultural goods, automotive products, chemicals, coal, industrial products, and other commodities between ports on the West Coast and Eastern gateways, as well as to Mexico. Based in Omaha, Nebraska, Union Pacific was founded in 1862 and is a component of the S&P 500.

The stock market attempted to erase some of Friday's massive losses, but mostly failed. In the short-term, the bears still have the upper hand, as many stock indices failed at key retracement levels as well as at clusters of moving averages. That is not surprising, considering the almost-uninterrupted rally in April and May as well as the pending inflation data and the SpaceX IPO. Index gains on Monday came exclusively from the scorchingly hot semiconductor stocks, as investors decided to take advantage of the recent weakness and reignite their chase of the momentum titans. MU popped 10%, ASML 6.5%, INTC 11%, LRCX 7%, AMAT 9%, KLAC 9%, and MRVL (Jenson Huang's recent $1 trillion proclamation) jumped 10%.

The stock market took a beating on Friday. Treasury bond yields soared as inflation fever has come back to haunt stock prices. Oil prices started spiking in the beginning of March and have been elevated for over two months. Fixed-income investors didn't start worrying about inflation ramping up until this past week. This was the first real spike in yields, but they have been ticking higher from depressed levels since late March. Some stocks (AI-related) seemingly were ridiculously extended, and it took higher yields to pierce the balloon. The S&P 500 fell 1.2% but was able to extend its weekly winning streak to seven. Both the Nasdaq and the Nasdaq 100 lost 1.5% and just missed their seventh week of gains. All three of the major indices traced out weekly doji candlesticks, a sign of indecision that often represents the beginning of a trend change (especially when the indices are stretched). Energy (+2.4%) was the only winning sector on Friday, with Materials down 2.7%, Utilities down 2.3%, and Industrials, Consumer Discretionary, and Information Technology all down 1.8%. The 10-year Treasury yield popped 13 basis points (bps) to 4.6% on Friday, the 5-year soared 13.7 bps to 4.26%, and the 2-year rose 4.5 bps to 4.08%. It was the highest close for the 10-year since May 2025, and the highest results for the 2-year and 5-year since February 2025. The 10-year appears to be emerging from a 12-month base and, based on the depth of the pattern, could see a measured move to the 5%-5.25% region. The last time the 10-year was at 5% was in October 2023. Yields could quickly turn lower if the Strait of Hormuz were to open. Unless Friday was another one-day wonder, which we doubt, initial support for the S&P 500 comes from the 21-day exponential at 7,250, an initial retracement lies at 7,234, and initial chart support is down at 7,100. (Mark Arbeter, CMT)