I went into this weeks analysis knowing the markets have been improving under the hood at a minimum since the election, in reality it started to improve a week or so before.  What is amazing to me though is how I had it stuck in the back of my mind that we were overdone here.  I realized it was just what I had been hearing from FinTwit and the like this week as many are still running the narrative that the markets are overdone here and danger lurks just over the horizon (even after a two month correction, but that is a different story). This didn’t resonate, but more tug at me, especially when the current sentiment does show there is a lot of optimism out there right now, in fact that in itself has even become the next narrative of maybe it’s too much.  When sentiment gets high, it can often lead to short term bumps in the road and it might this time as well, but that doesn’t feel right either based on what I have been seeing.  And how could sentiment be so high right now with politics, the pandemic, social unrest et al.  The fact that sentiment is remains high in the face of these things is trying to tell us something.   Sometimes they do get it right on the sentiment side of course, and if the charts play out the picture I am seeing this week, this might be one of those times.  From my views markets are ready to blow and the sentiment might just be correct for a while here as these patterns play out (which is not as unusual as many would have you believe).  Right or wrong, all of these narratives are just noise until the data confirms them, So let’s take a look at what the data is saying going into the week.