Outlook on technical trends for markets, economic expectations

Yahoo Finance's On The Move panel shares what's moving the world of finance.

Video Transcript

JULIE HYMAN: Jared, of course, is watching the charts. Stocks are at or near records. But there is high complacency as well, Jared. What does that mean?

JARED BLIKRE: Yeah, we talk about this a lot, especially the concentration of the FANGs driving the market. But I just wanted to go over a few tweets that kind of illustrate where we are on the YFi interactive. And the first is from Larry Tarantelli saying that semis, rails, trucking, and housing, all in the upper right-hand corner, that means very bullish. And he's saying it's a very bullish technical trend for markets and economic expectations.

So if you think about what's powering the move in markets right now, it's not just the FANGs. We actually have pretty broad breadth. And that's why we see chip stocks at record highs. We see housing stocks at record highs. And trucking and rails and transports have just been on a tear. I think they're down a little bit today, but up something like 10 or 11 days in a row.

So then let's take a look at what's happening in the NASDAQ. This is yesterday. The NASDAQ was up more than 2%, [? and ?] the volume in down stocks making up more than 50% of the total. This has never happened before. So within the NASDAQ, because of the way it's skewed, not necessarily seeing that breadth play out. But we do have some signs in the general market that it's OK.

And then here is SentimentTrader again. Here's an extremely important chart. Dumb money confidence is at the highest level since late 2020 or January 2020, one month before stocks peaked and crashed. And so that's the complacency. There is a lot of that in the market. But it doesn't necessarily mean we're going to have another crash. We might have a little bit of a rollover and correction to let some of these gains digest the way we saw FANGs, for instance, sell off a few percentage points earlier in the week.