According to Citrini Research, on June 15, the macroeconomic research firm released a report stating that despite strong U.S. economic fundamentals and easing inflation pressures, equity markets will experience sustained volatility. The report predicts the current selloff will persist longer than typical corrections, driven by overleveraged positioning and profit-taking in technology stocks after seven consecutive weeks of gains.
Citrini noted that the recent market correction reflects a cycle of "thematic momentum versus macroeconomic environment" dynamics. Technology shares, particularly hardware and momentum stocks, showed severe overbought conditions requiring minimal negative catalysts to trigger a drawdown. However, the report emphasizes the underlying macroeconomic backdrop remains more optimistic than many investors perceive, with the prospect of summer rally and recurring 10-15% pullbacks ahead.