The Bounce Fixed Nothing
The bounce is running out of steam
The latest equity squeeze is losing momentum, with tech running into major resistance and the broader market still stuck in its range. Meanwhile, the dollar is breaking out, yields are surging and liquidity is deteriorating. Yet investors continue pouring money into equities. Add a potentially higher volatility regime, and the setup for more violent two-way moves is firmly in place. The bounce may have relieved oversold conditions, but it hasn't fixed the underlying problems.