Several widely watched sentiment gauges are signaling unusually elevated optimism across financial markets after last week’s equity rally. Bloomberg Intelligence said its Market Pulse Index, which tracks momentum and risk appetite, entered a “manic” zone on 12 Aug., a level historically associated with subsequent periods of weaker returns. Additional barometers echoed the shift. The Stocktwits Sentiment Index is approaching its highest greed reading in a month, while the Crypto Fear and Greed Index climbed to 68 for Bitcoin on Monday, up from 60 earlier in the day, marking a firm shift into the ‘Greed’ category. The exuberant mood follows a strong performance in U.S. equities, with the S&P 500 gaining 2.4% and the Nasdaq Composite up 3.9% in the week ended 9 Aug., helped by robust Big Tech earnings and continued retail inflows. Analysts warn that heightened euphoria often precedes increased volatility, setting the stage for investors to parse upcoming U.S. inflation data and Federal Reserve commentary for confirmation of the rally’s durability.