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But we saved everything 🙂.
Craig Shapiro comments that equity futures are currently pricing in a best-case outcome for Iran, while the bond market is not reflecting the same optimism.
He points out that the recent 40 basis point increase in 10-year yields has transitioned from being attributed to inflation concerns to being seen as a result of rising real yields.
Shapiro has previously observed overbought conditions, noting the SPY RSI reached 76.3 and breadth declined sharply earlier in May here. On the day of May options expiry, he also warned that the removal of positive gamma could trigger a period of market weakness here. These prior cautions come as market sentiment continues to shift.