May 25 2026 Market AnalysisInvesco QQQ Trust Series IBATS:QQQap769We are currently seeing some imbalance on the Macro side. Either treasuries are underpriced (yield too high) or public credit (corporate bond option adjusted spreads) has not yet reacted to the current regime. In other words, the question is which assets are priced correctly, and which ones are out of balance, and what implications that will have for US equity indices? Global markets are showing preference for safe treasuries and USD - suggesting risk-off, however equities have not shown much of a reaction yet. US indices have faded back to equilibrium while levels remain elevated. We have also seen tech XLK fade while healthcare XLV has expanded, along with safe-haven sector consumer staples (XLP). Will a market already rotated into defensive sectors welcome volatility? On the Volatility side, most of the indicators are for intraday analysis but I figured I'd show the VIX and VVIX levels to illustrate that implied volatility demand (VIX) remains suppressed yet somewhat elevated, while convexity (VVIX) is priced low. Will convexity expand quickly if the market begins to realize volatility? Conversely, if the market continues to reject volatility VIX down to lower levels, will the market begin rotating back into risk-on sectors like XLK, supporting long-equity trades? Macro Dashboard FX Dashboard Stock Dashboard Volatility Dashboard