one analyst says the market is starting to show signs of the sort of"euphoria" that tends to come before a major correction.
"Some of our indicators are beginning to move into the 'euphoria' stage, and we caution that managing drawdown risk is coming to the fore," he added. Stimulus packages worth trillions, coupled with rock bottom interest rates, have helped investors flock to equity markets in recent months, and bolster pandemic stricken companies, which in turn has pushed stocks higher.
"We highlight that this rally has been well above the average of the previous S&P 500 recoveries from market lows."Increasing divergence of the top 20 S&P 500 stocks from their 200-day moving average.
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It’s like a poorly built wall - it will cascade back down and crush the builder
Is euphoria before or after the all stonks go up casino stage?
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