Well it took a few weeks but a new all-time high has again been established in the SPX. This is undoubtably the “AI bubble” coming to a peak. How far it will run and how long is a matter of time.
There are probably 5 valid ways to count this massive surge since the April lows and I have adjusted to what seems best at the moment. A clear channel line has been established and I assume another upper strike will occur – my best guess is 6600 SPX or slightly north of that marker in late August. Lets go with that for starters.
A price break beneath Minor blue “4” would indicate that this structure has likely completed. Again, there are enough waves in place to consider it complete but momentum is still on the bulls side so I think it runs further.
But as my analysis per a few months back predicting new all-time highs in the SPX I predicted the DJIA would struggle. The monthly chart tells the story. 4 months in a row it poked at the 45,000 level unable to gain a foothold above. Oct, Nov, Dec (intraday peak), and Jan. Then again last month in July. We seem to be knocking on the door again.
If the DJIA breaks above 45,000 in a solid fashion, I believe it will mark a fantastic “Tulip bulb” blowoff top of the likes that catches everyone by surprise. Every junk DOW stock will be bid to the moon. Likely every junk NASDAQ stock will also be bid. The “Mag 7” tech stocks which has fueled the AI bubble may start to diverge in this scenario and start to drop off ahead of the rest of the blowoff top. So it is getting very interesting.
This is about as simple analysis of the AI bubble you will get but I advise you check out this Substack for all things concerning our tech overlords and the bubble we are all caught up in:
Ed Zitron’s Where’s Your Ed At
Interest rates are starting to signal that .25% September cut. Wow, that will surely save the overstressed out consumer! Well done Fed faggots!
The CPCE bottomed a while ago. Its not a great timing indicator of a turn but and upturn that occurs first prior to a market top is very consistent of overall market behavior.
I don’t know where the (5) of [5] will end up so I didn’t bother to move it. Again, this shows the struggle with the 45,000 level. If it is victorious, we could have market mayhem blowoff top as I stated above.
And thus we come to the Nasdaq. The ultimate bubble created by our tech overlords. LLM “AI” is shitty and trash and worthless and nothing but a lie. But they have nothing else to offer but the dream of being like the most high God in fooling the foolish into believing they can make a bunch of computer code and algorithms as if it can even come 1% close to the ability of the God-created human brain.
It is the ultimate lie and scam born of Satan. And well, it seems appropriate for the final bubble… I do believe we are meeting the end of the world scenario when this bubble finally pops. Our big tech overlords have nothing else to offer.
The “enshittification” of all things is well underway…
