Well, that burst and solid finish over DOW 45,000 I talked about in the last post I made finally occurred. I suspected it would. The NASDAQ is lagging which I also talked about. The SPX is knocking on the door of another all-time intraday high.
I do believe this is the AI bubble coming to its peak. Again, the exact timing is a best guess based on wave forms, channels, and some signs of a market peak via social mood manifestations. What that may be who knows.
Who recalls that the S&P 500 bottomed out in 2010 at a low of 666? Well, it is certainly interesting that we are coming up to SPX 6660. A 10X multiple.
Another possible number to watch for is concerning the DJIA. The 24th sequence of Fibonacci numbers is 46,368, a mere 700 points away. If the SPX approaches 6660 no doubt the DOW would be right around 46,368. Exciting times!
Market internals on the NYSE were monster as you can see in the graphs at the bottom of my SPX chart. An absolute monster 90% up day in both volume and number of stocks up verses down. This is actually probably bearish herding behavior nearer a top rather than a “kickoff” to something very long-lasting. However, this top to end all tops could get crazy. Hang on for the ride. When the AI bubble pops and everyone realizes it all at the same time, it’ll be a mad dash to collect profits.
This is a global phenomenon. Global DOW is just on steroids.
Junk debt? Who cares! Its like gold to investors.
The “news” of the market screaming higher is that Powell will support a September cut. Well of course he does, because finally the market has signaled to him, he must do so. Powell HAS to follow the market. The Fed rate cannot get out of whack with what the massive treasury market signals. The market leads, the Fed follows. Who thinks a .25 cut will help anything at this point? A credit card at 29.99% cut to 29.74% is NOT helping the consumer. Nor is it really helping the overall interest debt load of the US Treasury which has surged to over a 1 trillion a year. Yeah, it’s all just funny money now, isn’t it?
And as per my last blog post, I suspected the Nasdaq would not be leading the Dow over the 45,000 level. The NASDAQ may have quietly downturned first. We shall see.
