From the desk of Willie Delwiche.
Key Takeaway: There is ample evidence of investor complacency, optimism, and aggressive risk-taking.
The behavior of the broad market (another breadth thrust last week and the weekly NYSE + NASDAQ new high list is at its highest level ever) suggests some of this may be justified.
Sentiment is likely to become a more acute headwind when rally participation narrows and/or optimism remains elevated in the face of market volatility.
For now, optimism has been revealed as a mile wide but only an inch deep, with concern rising the moment the market stops rallying.