I wanted to share a few charts from our friends at Elliott Wave I thought you would find of interest.
First there is the bullish consensus, which illustrates that right now it has pushed above 70, which is extremely rare. I have tinted the prior instances in which this took place. (As a side note, I find the CNN Fear/Greed meter (which reads NEUTRAL, if you can swallow that) to be idiotic, since it must be based on a 5,000 day moving average or something).
Similarly, the sentiment with institutional investors is fairly ga-ga, as we have pushed to a level not seen since November 2007.
Of course, AI has been the reason for the latest market insanity, and this basket of AI Beneficiaries lines up quite nicely with a five-wave top.
Finally, the five waves with gold have played out magnificently as well. Kindly note that whereas the above equity tops are considered generational, and top with gold is a “3 of 5“, suggesting that, yes, gold is going to fall for some number of months, but it will steady itself and commence a wave 5 to take it to its ultimate top, which could be God-knows-how-high.
God help us this week! It could get interesting.
