While we may not be in a full-fledged bubble yet, it doesn’t
mean we aren’t on the way to that point. Investors are very
exuberant, along with the media, and analysts are rapidly finding
ways to justify excess valuations. In the near term, a market top
is very likely. The market is currently up 17 of the past 19 weeks,
the longest stretch since 1980. More importantly, the deviation of
the market from the underlying 200-DMA is reaching rare extremes.
Furthermore, as noted above, the market trades 3 standard
deviations above the 50-DMA concurrently with market momentum and
breadth deteriorating. Historically, such a combination was a
decent warning of a near-term market top. - RIA Advice.
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Probably A Market Top While we
Posted by EdZ on 9th of Mar 2024 at 12:54 pm
Probably A Market Top
While we may not be in a full-fledged bubble yet, it doesn’t mean we aren’t on the way to that point. Investors are very exuberant, along with the media, and analysts are rapidly finding ways to justify excess valuations. In the near term, a market top is very likely. The market is currently up 17 of the past 19 weeks, the longest stretch since 1980. More importantly, the deviation of the market from the underlying 200-DMA is reaching rare extremes. Furthermore, as noted above, the market trades 3 standard deviations above the 50-DMA concurrently with market momentum and breadth deteriorating. Historically, such a combination was a decent warning of a near-term market top. - RIA Advice.