As the Extraordinary Popular Delusions and Madness of Crowds (EWY) index continues to surge, it’s hard not to notice the eerie similarity between its recent price action and that of an artificial intelligence (AI) stock. The index has been on a tear, ripping another 7% higher today, taking its year-to-date gain to over 30%. This rapid ascent has left many market observers scratching their heads, wondering how much further the index can climb without hitting a wall.

One key observation is the complete detachment of EWY’s price from its major moving averages. Currently, the index sits nearly 70% above its 200-day moving average, a level that was previously considered unsustainable. This massive divergence between the index and its own history has led some to question whether EWY is now trading like an AI stock on steroids.

The similarities between EWY’s price action and that of an AI stock are not coincidental. Both are characterized by rapid, unpredictable movements, with prices seemingly jumping up and down without any discernible pattern. This has led some to speculate that EWY’s price action is being driven by algorithms and high-frequency trading, rather than traditional market forces.

While the idea of an AI stock on steroids is intriguing, it’s important to remember that EWY is still a financial index, not a standalone AI stock. Its price action is influenced by a complex array of factors, including macroeconomic trends, geopolitical events, and investor sentiment.

Despite the unpredictability of EWY’s price action, there are some signs that suggest the index may be due for a correction. For one, its Relative Strength Index (RSI) has reached overbought levels, indicating that the index may be due for a pullback. Additionally, the index’s Bollinger Bands have expanded significantly in recent days, suggesting increased volatility and potential price swings.