16.11.25 - Buy the dip lost quickly steam

The brief rebound during Friday’s US trading session faded already in the first half of the trading session. After an initial push higher, with tech indices even turning slightly positive versus Thursday’s close, buying interest evaporated quickly.
The market then drifted sideways and lower as investor confidence remained fragile.

Markets:

• Weekend Futures are slightly negative

• Cryptos: down to levels last seen in May with Bitcoin falling towards USD 93k

My View: The rebound losing momentum so quickly is not a positive signal. It suggests that the number of willing buyers is thinning out — a clear indication of weakening underlying demand. This reduces the probability that last week’s bounce will turn into a sustained recovery.

With crypto markets showing renewed weakness after breaking key support levels, the risk is growing that equities will mirror this pattern as we enter the new week.
Sentiment remains fragile, leverage in speculative corners is still high, and the market is vulnerable to further downside pressure if no fresh catalysts appear and the doubts on the AI valuation remain.
Investors will focus on Wednesday’s earnings release of Nvidia. Markets could see a wait and see stance and positive sentiment won’t return by then.

For now, caution remains warranted. A stronger washout or a clearer capitulation wave may still be ahead before a more durable bottom can form providing a selective buying sign.

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