The stock market is being driven by visions of some nirvana where “generative AI” has solved all the problems of the world. Of course this is typical of a technology-driven mania where 99.9% of the population has no understanding whatsoever of the realities of the technology. A steady flow of hype sustains the speculative mania until the music stops. Then a rush for the exits occurs, but alas the suckers are all in and there is a distinct lack of interest in catching a falling knife.
The study mentioned in the previous post is likely the first note of the coda.
The capital-weighted indexes reinforce the influence of the tech giga-caps, but behind the generals the troops are in bad shape. Breadth is poor, to say the least. Historically, the market has waited for the first Fed cut to collapse. I suspect that any rally from here will turn out to be a whipsaw, but that’ just me.
Financial Reality 