Although opinions are diverse here, I think we can collectively agree that the broad stock market (represented below by the Wilshire 2500) is, shall we say, elevated. As in: never been higher. As in: not a bargain. As in: insanely overpriced. Seriously. Nosebleed territory.
What, if anything, will be the first to break? My money is on the small caps. Let’s keep an eye on this diamond pattern.
Taking a few big steps backward, we can see this diamond in the broader context of the past couple of years. Get the diamond to fail, and the trendline fails, too.
Now I shall return you to the Live TimCam showing me attempting to generate content from this lifeless market of ours during the weekend.