Babak at Trader's Narrative shares some interesting information about equity market sentiment, which suggests a great deal of bullish complacency among bullies and resignation for the bears.
But the bullies' exuberance and bears' hibernation might be facing an interesting test in the weeks and months ahead, as the monthly US$-adjusted S&P 500 is at resistance near the '03 low:
The NASDAQ appears to be nearing completion of an Elliott Wave b wave of a C wave within a larger corrective descending horizontal triangle:
The S&P 500 exhibits a similar pattern compared to the S&P 500 in 1929-49:
Today's increasingly bullish sentiment is consistent with a B (or 2) wave, which would imply a setup for the most destructive (for financial wealth and confidence) phase of a C-wave decline, lasting 2-3 years.
