Their attitude is best described by an old Steve Wariner song, "Some Fools Never Learn". You play with the fire, you're gonna get burned".
Considering just how tenuous things are, the degree of complacency that exists among equity bulls is nothing short of astonishing. The situation can best be described by looking at a chart of the VIX, or Volatility Index.
While the index has indeed risen from some of its lowest levels down near 14, it is still generating relatively low readings. Apparently traders could care less about potential headwinds; either that or they have already factored in what in their minds is a worse-case scenario. Personally, I think it is symptomatic of the Pavlovian response by this generation of short-sighted economic ignoramuses who believe in the allmighty power of modern Central Bank money creation to plaster over everything that dares arise that might challenge the comfort of the casino players, aka, hedge funds.
I suppose it will work until it just stops working one day and that will be that. Then maybe we will see some economic sanity prevail.
Downside support still looks firm.