Not in your head, but most definitely over our heads. It is crazy.
Look up Chemical Ice Nucleation. It is a possible answer as to the refraction. As the clouds form ice particles, the light is refracted giving a rainbow effect. Sun dogs are well known in the extreme climes, but not in Canberra on a 38 degree celcius day in summer. Something has to cause ice laden clouds in those conditions.
Another thing I am noticing pop up in a lot of people's photos is an odd type of rainbow. I first saw one in January, and over the last 2 months have seen about 4 or 5 people from various places around the world post them.
LOL, about the same time I posted the rainbow comment, a member of the photography group on MINDS posted another one. Double rainbow, light inside, perfect form.