Stock Markets Analysis and Opinion
Dumb Money Indicators Hit Extreme Levels: Frothy Signs for Tech?
2023.07.28 03:53
As we have pointed out several times, the and tech stocks (i.e., Semiconductors) are critically important leaders for the stock market.
And wouldn’t you know it, both the Nasdaq 100 ETF () and VanEck Semiconductor ETF (NASDAQ:) are approaching all-time highs (which mark important resistance).
Looking at today’s “monthly” chart, it is clear that the all-time highs mark important resistance. But we can also see another indicator further below – the “dumb money” confidence indicator.
And that is off-the-charts high! You can see that it is well above the red line (caution).
The next move for tech looks to be an important one. Will extreme dumb money confidence mark a bubbly trading top, or will the good times continue?
