As the second algo-crazy spike in stocks in 2 days draws to a close, it is perhaps worth considering BofAML's Macneil Curry's perspective on the S&P 500 - despite the potential for further near-term strength, equity gains are corrective and downside risk remain... or put a different way "sell the f##king rips." Just as growthless-ly, Curry advises 5s30s flatteners in Treasuries as the slowing trend is set to continue.

US5s30s resumes its flattening trend.

US5s30s is resuming its flattening trend. The test and reversal from old channel support, now resistance at 196bps and coincident momentum unwind from oversold extremes says the flattening trend is resuming and that it has room to run.

REMEMBER, WE ARE IN A CYCLICAL (multi-year) flattening trend. Steepening is temporary and corrective. Our initial downside targets are seen to retracement support at 146bps, but eventually we look for a move to long term channel support at 57bps and eventually below.

Initiate UST 5s30s Flatteners at mkt (185.3bps) risk 197bps, target 143bps

ESM4 gains remain corrective.

Turning to equities, despite the potential for further near term strength, against a break above 1867.50/1872.53 (ESM4 and CASH) downside risks remain for the confluence of CASH SUPPORT between 1794/1763 (10m trendline and 200d avg).

Source: BofAML