The market has clearly stabilized after whatās been a rocky start to the year. But the real question now is whether weāre setting the stage for a full-blown rally in equitiesāor just grinding sideways for a while.
A good barometer here is speculative growth.
We saw an epic failed breakout. Now, weāre knocking on that same level for the second time. If ARKK can rip through it cleanly, thereās a strong case to be made that weāve carved out a v-bottomāand itās game on.
That said, after corrections like this and with volatility still elevated, markets often chop around in messy, sideways action before resolving directionally.
Itās in these moments, when the market is caught between two narratives, that relative strength becomes critical. The leaders will start to separate from the noise. Keep an eye on which names hold their ground, build tight bases, and push to new highs even when the indexes donāt. Thatās where the next leg higher will come from - whether the market rips immediately or grinds through more indecision first.
