Downside FragilityThe AI melt-up is becoming increasingly fragile. Momentum, leverage, upside chasing, and mechanical rebalance flows have all reached historically extreme levels at the same time that downside protection is getting abandoned.The problem with vertical spot-up, vol-up regimes is that once momentum finally starts reversing, downside moves can quickly become far more violent than investors expect.
Downside Fragility Just Exploded
SOX trading 62% above its 200dma, comparable only to the French market at the peak of the Mississippi Bubble and Nasdaq at the peak of the dot-com bubble...










