We study theoretically the fluorescence of a two-level atom driven by a laser of weak to moderate intensity, that is, a regime where squeezing would occur. Close to saturation atomic fluctuations dominate and become non-Gaussian, degrading the squeezing. Using Bloch equations and quantum jump trajectories we find that allowing a moderate degree of non-linearity, conditional homodyne detection [G.T. Foster, L.A. Orozco, H.M. Castro-Beltran, H.J. Carmichael, Phys. Rev. Lett. 85, pp. 3149-3152, 2000] would actually help in observing the elusive squeezing in the fluorescence by increasing the size of the characteristic negative spectrum.