Morgan Stanley on the US equity rally - says it's a "head fake"

Morgan Stanley remain unconvinced on US equity market strength. These from a Monday (US time) note to clients:

• “Bottom line, from a technical standpoint, last week’s price action showed signs of panic buying, in our view.”
• “Rather than a short squeeze Short Squeeze Short squeeze or the mother of all short squeezes (MOASS) is another term which originated in probably Reddit’s most famous investing community /r/wallstreetbets. The acronym stands for (the) Mother of All Short Squeezes and originated in parallel with the Gamestop saga. As Gamestop’s short interest was reportedly over 100%, several retail and online investors (many of who followed Keith Gill, user /u/deepf—kingvalue) and other known investors such as Ryan Cohen and Michael Burry joined the ring Short squeeze or the mother of all short squeezes (MOASS) is another term which originated in probably Reddit’s most famous investing community /r/wallstreetbets. The acronym stands for (the) Mother of All Short Squeezes and originated in parallel with the Gamestop saga. As Gamestop’s short interest was reportedly over 100%, several retail and online investors (many of who followed Keith Gill, user /u/deepf—kingvalue) and other known investors such as Ryan Cohen and Michael Burry joined the ring Read this Term, the market was driven by the biggest winners as more market participants convinced themselves the next bull market Bull Market A bull market is defined as a financial market in which prices are rising or are expected to rise. This designation is most commonly used in the stock market, though can also be applied to other markets as well, including real estate, foreign exchange, commodities, etc.A bull market differs from periodic rises in assets by virtue of its duration, not frequency. For example, a bull market will typically see extended periods during which large numbers of stock share prices are rising over months, A bull market is defined as a financial market in which prices are rising or are expected to rise. This designation is most commonly used in the stock market, though can also be applied to other markets as well, including real estate, foreign exchange, commodities, etc.A bull market differs from periodic rises in assets by virtue of its duration, not frequency. For example, a bull market will typically see extended periods during which large numbers of stock share prices are rising over months, Read this Term may have begun and they can’t afford to miss it.”
• “In short, we believe this rally will prove to be a head fake like last summer’s.”
• "there are many technical signals that conflict with the idea that this is the beginning of a new cyclical bull market—extreme narrowness (poor breadth), quality/defensive leadership, and broad cyclical underperformance"

(This chart is from our charting app, which is free and can be found at this link)