Bank of America strategist Michael Hartnett stated that he is monitoring the unwinding of positions in frothy assets but expects key support levels to hold. These critical thresholds include: - The SPDR Technology Select Sector ETF (XLK.US) at $133 - Bitcoin (BTC-USD) at $58,000 - Gold at $4,550 per ounce

Hartnett noted that Wall Street's long positions—such as the "Tech Giants," cryptocurrencies (IBIT.US, ETHA.US), precious metals (GLD.US, SLV.US), and private credit (BIZD.US, PRIV.US)—have recently experienced a "painful collapse." In contrast, short-oriented assets like small-cap stocks (IWM.US), consumer staples (XLP.US), and energy shares (XLE.US) have shown relative resilience.

This sell-off is primarily driven by a "triple top" convergence: "peak positioning, peak liquidity (diminished rate-cut expectations and rising hike risks), and peak political cycle (declining pro-business Trump poll numbers)."

However, Hartnett added that as long as the U.S. dollar index does not experience a systemic surge above the 100 level and Treasury yields (TBT.US, TLT.US, SHY.US, IEF.US, IEI.US) avoid a "disruptive crash," the current market movement remains a "substantial, healthy, and overdue bubble cleanse."