Capitulation? The Setup For A Violent Market Squeeze

Capitulation?

Markets have gone from panic to a potentially massive reversal. SPX and NDX futures are printing enormous hammer candles after testing critical support overnight, while risk appetite has suffered its biggest monthly collapse since 2021. Sentiment is approaching capitulation, short positioning appears to be building and tech valuations have reset sharply.

Meanwhile, the post-midterm playbook points to significant upside potential. The washout may not be complete, but the ingredients for a violent squeeze are falling into place. Don't forget the upside.