First, you should watch this video by Alessio Rastani about where dumb money sentiment is right now. It's not really surprising given the current feverish and delusional climate in equities.
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But that's not all. The S&P500 Index is sitting in a perfect textbook pattern.
This image is taken from "Technical Analysis of Stock Trends, Edwards & Magee, 4th edition, p.145."
Below is the S&P500 right now. Notice any similarities?
If the Technical Analysis is correct, we should see the following occur:
I thought this was interesting to share. Stay safe, thanks for dropping by.