Sky high tech sentiment

Tech stocks, and internet stocks in particular, continue to soar. The NASDAQ Internet Index is making new all-time highs virtually every other day, pushing its 14 week RSI to the highest level since before the March stock market crash.

In recent years, such extreme sentiment levels lead to corrections/pullbacks in internet stocks. But before that, it wasn't a consistently bearish factor for tech stocks on any time frame. Eventually there was a pullback, but it was hard to pinpoint where exactly that pullback began.

Using a similar calculation that we use for Optix, the NASDAQ Internet Index Optimism Index's 3 month average continues to hover around sky-high levels:

Such high levels of optimism may be a short term bearish factor for internet stocks, but beyond that strong momentum usually carried internet stocks higher.