Learnings and conclusions from this week’s charts:
1. $.SPX(.SPX)$ is taking a breather after briefly hitting 6000.
2. Numerous investor surveys have hit record (bullish)highs.
3. Market measures of sentiment show extreme confidence/complacency.
4. A clear vibe-shift is underway in economic confidence.
5. High growth once is easy, consistently high growth is hard.
Overall, the market is taking an inevitable breather after an extended run, and I think one way to reconcile it is if nothing else; just a period of digestion and correction of extreme confidence, optimism, and bullish euphoria (as the data and charts below show).
It does mean there are a lot of minds that could change given the right prompt, but in the immediate term the predominant market mood is bullish and the underlying trend is still up.
$SPDR S&P 500 ETF Trust(SPY)$ $E-mini S&P 500 - main 2412(ESmain)$ $Cboe Volatility Index(VIX)$ $E-mini Nasdaq 100 - main 2412(NQmain)$
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