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Dumb Money Indicators Hit Extreme Levels: Frothy Signs for Tech?

By Chris KimbleStock MarketsJul 28, 2023 03:39AM ET
www.investing.com/analysis/dumb-money-indicators-hits-extreme-levels-frothy-signs-for-tech-200640448
Dumb Money Indicators Hit Extreme Levels: Frothy Signs for Tech?
By Chris Kimble   |  Jul 28, 2023 03:39AM ET
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As we have pointed out several times, the Nasdaq 100 and tech stocks (i.e., Semiconductors) are critically important leaders for the stock market.

And wouldn’t you know it, both the Nasdaq 100 ETF (QQQ) and VanEck Semiconductor ETF (NASDAQ:SMH) are approaching all-time highs (which mark important resistance).

QQQ Chart
QQQ Chart

Looking at today’s “monthly” chart, it is clear that the all-time highs mark important resistance. But we can also see another indicator further below – the “dumb money” confidence indicator.

And that is off-the-charts high! You can see that it is well above the red line (caution).

The next move for tech looks to be an important one. Will extreme dumb money confidence mark a bubbly trading top, or will the good times continue?

Dumb Money Indicators Hit Extreme Levels: Frothy Signs for Tech?
 

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Dumb Money Indicators Hit Extreme Levels: Frothy Signs for Tech?

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Comments (1)
SL VD
SL VD Jul 28, 2023 4:29AM ET
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This Dumb Money Confidence Indicator looks good! But where do we get it ????
 
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