Did The Bull Market End Last Thursday? Stocks Crash While Bonds Rebound!

Market sentiment has shifted from a bull phase to a more precarious environment following a failure to sustain gains on positive earnings reports. The recent reaction to CPI data, combined with the inability of tech and AI stocks to rally on strong corporate results, indicates that the market is no longer discounting bad news effectively. With speculative positioning remaining heavily long, the risk-reward profile has deteriorated. Bonds, despite recent volatility, continue to signal underlying stress, and the broader market's inability to shake off negative catalysts confirms the end of the previous bullish trend. Investors should prioritize risk management and avoid exposure to assets that fail to appreciate in the face of rising interest rates, as the current tape suggests a bearish tone until the market proves it can again respond positively to news.