The AI Melt-Up Finally Started Cracking

Just In Time

The AI melt-up came into today at historically stretched levels. Nasdaq was trading more than 15% above its 100 day moving average, risk appetite had surged to one of the highest readings in years, and retail call buying was approaching meme-era extremes.

Everybody suddenly became terrified of missing the upside at the same time. That is usually when reversals start becoming violent.