Sellers Vanish... Stocks Soar to New Heights... Is Confidence Overdone?

The recent surge in US equities, marked by record highs and declining seller volume, suggests an overheated market driven by exuberance rather than fundamentals. Insiders warn that this complacency could lead to a brief, shallow correction—potentially 3-5%—before resuming upward momentum. With trading volumes at their lowest since 2020 and investor sentiment remaining bullish despite geopolitical risks like tariffs, the market’s complacency could mask underlying vulnerabilities.

Historically, similar low-volume peaks have preceded short-lived pullbacks, but the current environment’s resilience—particularly in tech and financial sectors—may delay or soften the correction. For politically aware investors, this signals a delicate balance: optimism could turn sour if external shocks or earnings disappointments materialize, testing the durability of this rally amid ongoing geopolitical tensions and economic uncertainties. The coming weeks’ earnings reports will be critical in gauging whether the market’s confidence is justified or dangerously overextended. Read the full story at the source.