Peak Euphoria: Dow Shy Of Record Overbought

With the Dow Jones less than 100 points away from 20,000, it is moot to say that the only sentiment driving the market here, with the S&P trading at 25x actual GAAP P/E, is adrenaline and pure euphoria.

Just last night, we showed that the Dow was the most overbought in the past 20 years, while options traders have never been more bullish. Today, following the Dow's surge right out of the gates, it is safe to say that the "Industrial" average, where Goldman Sachs has been the star performer, and which as of last night, was more overbought on just 4 previous occasions in the past century, is at record euphoria.

Putting similar RSI levels in comparison: August 1927, June 1944, July 1955, November 1996, and now December 2016... after each of the previous spikes, stocks fell back 4 to 5% within days.