The Bounce Just Failed — Now What?
We are not out of the woods
The squeeze ran out of steam right where it needed to. What looked like a potential breakout quickly turned into a clean rejection at key technical levels, with both SPX and NASDAQ failing at resistance. At the same time, volatility has cooled from panic levels but remains elevated enough to keep pressure on the market. Add in weak liquidity and destabilising flows, and this starts to look less like a healthy bounce and more like a fragile setup where downside can grind, or even accelerate, from here.