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Takeaway: Last week's two day rally in equities was not the bottom for which so many were hoping.

INSTANT INSIGHT | Oil, Volatility & Old Wall Storytelling - bears in car cartoon 01.21.2016

Beware the bounce.

No, last week's two-day rally was not a sign that the equity crash bottomed out. Heightened volatility should continue to ravage financial markets.

Here's analysis from Hedgeye CEO Keith McCullough in a note sent to subscribers earlier this morning:

"... After a 2-day bounce in oversold beta all of the bottom callers came back, but day 2 of that came on one of the lightest US Equity Volume days of the year (-9% vs 1-month average). Front-month VIX didn’t come close to breaking any lines of support."

On a related note, Oil volatility is ramping too, as crude prices continue their downward descent this morning. 

"Oil led the bounce (that hasn’t been a good thing for 18 months) +5.9% on the week for WTI, but is straight back down -3% this morning after failing at all lines of @Hedgeye resistance – risk range there = $28.21-32.68; Oil Volatility (OVX) = 62!"

Keep your head up out there and beware of Old Wall's shape-shifting storytelling.