Flight to safety trade continues to build and expand, with health care and communication services leading the way. Technology sector shows signs of instability and weakness, with volatility indicating potential market instability. Credit risks are growing in European banks, while the U.S. dollar shows a flight to safety in motion.

Tech continues to experience some wild swings, which could be an indicator of how confused the market is right now. Treasury yields have continued to soar, essentially amplifying the Fed’s existing tightening cycle, but geopolitical risks may change the near-term narrative. It also has the look of the logical next step for risk assets in a pre-recession environment.

High yield spreads haven taken a break from their recent rally, but they’re holding, which means that a repricing of credit risk may be starting. Even if the flight to safety trade isn’t showing up in Treasuries, it sure looks like it is in the dollar. The violent whipsaws in this sector are an indication that the path of returns is never a straight line.