Stock Market Sentiment Turns Extremely Bearish Ahead of Monday

Traders are heading into Monday with some serious risk-off expectations.
Sentiment across the market has deteriorated quickly, with investors increasingly bracing for a volatile start to the week.
After the recent combination of higher Treasury yields, renewed inflation concerns and uncertainty around the Federal Reserve, even strong economic data has become difficult for equities to digest.
The bigger issue is that markets are increasingly sensitive to anything that could keep interest rates higher for longer.
That leaves $SPX and $QQQ vulnerable if yields continue climbing or another macro catalyst forces investors to price in tighter financial conditions.
Monday could be a major test of whether buyers are still willing to step in or whether the recent pressure turns into a broader selloff.