Katie Stockton Names 3 Warning Signs That Could Deepen the Stock Selloff

Fairlead Strategies founder and managing partner Katie Stockton said on CNBC that the share of stocks above their 50-day average had fallen to 21%, matching the March low, and named three warning signs that would make her more bearish. She sees support intact and suspects last Friday was a short-term low for chips, though she calls the setup fragile after the Philadelphia Semiconductor Index fell 11.4% last week in a rout unmatched since April 2025. She would turn more bearish if support breaks across many stocks, credit spreads, the extra yield for riskier corporate debt, widen, or the Cboe Volatility Index, Wall Street's fear gauge, decisively breaks resistance such as its 200-day average. She called current credit stress somewhat localized.