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Sentiment readings growing even more extreme while SOX hits support

The tug-of-war between bulls and bears seems never-ending, as any hint of inflation easing seems to result in a sharp recovery for Equities.  Yet, Tuesday’s BOE governor’s comments seemed to throw “cold water” on the rally in global risk assets when he reiterated the plan to stop bank intervention in the bond market by end of week. Importantly, Equities continue to trade in a very tight positive correlation with the move in Treasuries, but even...

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