Watching the $SPX500 hover around 7354.02 today, I can't shake the feeling that the current bullish sentiment, especially the 'melt-up' calls, might be overlooking some underlying divergence building up. Seems a bit too universally accepted, if you ask me. Curious to hear if anyone sees concrete data pushing back on this, or if I'm just being overly cautious.
The 'melt-up' narrative always gains traction at ATHs. Divergences are often present but can persist longer than expected. What specific data points are you looking at that suggest a stronger pushback than usual?
I'm seeing similar things. Breadth indicators seem to be telling a different story than the headline index. Could be a warning sign, or just a temporary pause.
I'm with you on this. It feels like everyone's just assuming the rally continues without any bumps. Are there specific indicators you're looking at that suggest divergence, or is it more of a gut feeling from the overall market sentiment?
I've been thinking along similar lines. While the headlines focus on the index highs, I'm more interested in seeing how many individual stocks are actually participating in this rally, or if it's becoming increasingly top-heavy. That divergence would be a more concrete signal for me.