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The 6-day SPX streak has actually been rather impressive — since 1970, this kind of run has only happened 13 times. But with the death cross still in place and 5500 the must-hold level, this rally might be running on fumes...
VVIX implodes as early long vol positions start to look attractive again, while exploding Google searches for “buy gold” mirror the frenzy in spot. At the same time, foreign investors stay on strike, deepening pressure on a dollar already strained by twin deficits.
After weeks of extremes, key market indicators are quietly slipping back toward neutral. Risk appetite, fund flows, correlations between assets, and even macro volatility measures are all reverting rapidly — signaling a major cooling off from previous extremes. Let's look more closely at this broad normalization.
The S&P 500 is up 14% since April’s low, with retail loading up and hedge fund positioning still depressed. With re-gross potential rising and the FOMC looming, is this just a bear market rally — or something more?