The Japanese stock index keeps hitting record highs but the risk of a correction is high and increasing...
What’s more in this report:
Can the S&P 500 reach 8000 in the months ahead? Kospi: A very significant ‘blow-off’ top seems to be coming (soon). What's next? US and German 10-year yield: The waiting game continues. Crude oil: WTI seems poised for an interim rebound rally, but we foresee a continuation of the larger degree bear trend thereafter.
The near-vertical price acceleration and exhaustion behavior signal major correction risk for (semiconductor) stocks. Although there are no bearish triggers yet, we would like to highlight Wall Street veteran Bob Farrell’s rule: 'Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways’ …
Long-term bond yields continue to trend higher across major developed markets. Technically, the path of least resistance for 10-yields appears higher..
The AI-fueled surge in semiconductor stocks is pushing the main US stock markets deeper into what increasingly looks like a classic melt-up phase. With very narrow market leadership and sentiment turning more euphoric, the rally may be entering its most explosive stage yet. Historically, these late-stage melt-up phases can persist far longer than expected. Is this the start of a final buying climax before a major reversal?
