While the market is partying like it's 1999, investors would be smart to remember what came next: the 2000 dotcom bubble, when stock prices rose substantially above underlying asset values, resulting in a market crash. Why it matters: Wall Street analysts are increasingly noting signals of a bubble, as stocks are priced to perfection while uncertainty remains on the political and economic fronts. By the numbers: The Nasdaq 100 has gone 60 trading days without closing below its 20-day moving average, according to financial services firm BTIG. That's the second-longest streak in history. The longest streak ended in early 1999 and, as noted above, a crash followed. It's worth noting the S&P 500 is currently trading at 26 times forward earnings, which is above the historic average of 18. https://www.axios.com/2025/07/22/stock-market-bubble-wall-street
Thats not the full truth, didn't the Nasdaq rally 100% from early 1999 to early 2001. So this sounds like a very bullish indicator. At least for the next 12 months or so.
It has nothing to do with the rise...they are mentioning that its the second longest streak Without a close below the 20 day moving average!
With the S&p 26 times forward earnings, I believe that's called extremely overbought numbers. Those are facts when considering where thr average s&p forward earnings usually is at historically.
Yes, and the last time this happened, the Nasdaq rose 100% immediately afterwards. So this could be a very bullish indicator for the next 12 months.
Nasdaq jumping 100% immediately afterwards?? Nasdaq 50000 over what time frame?? 2027? 2028? That would push up the dow to 100k and spy to over 14k....
I prefer to cash out the chips that I had in; I am happy with a few bucks in my pocket. It is going to pay for a few beers at the beach.