Rebound possible, but no blow-off top in sight. Retail is still buying the dip and calling for a bottom.

Friendly reminder: U.S. markets remain extremely negative in terms of sentiment across multiple indicators — which, from a contrarian perspective, is typically bullish.

However, equity allocations are still relatively high, highlighting a clear disconnect between positioning and sentiment.

On top of that, given the unique market environment we’re in, a rebound is possible — but in my view, it would likely be just that: a rebound. It’s hard to envision a “blow-off top” or the “continuation” of a sustained bull market from here.

This is one of the toughest markets I’ve ever seen. I truly hope you have a clear plan in place for how to navigate the coming weeks, months, and even years.