Market Top

• Divergence among sub-markets, industries, or individual companies (depending on the market in question)
  • Strong bull markets usually carry all participants up
• No one thinks markets will every go down
• A small subset of stocks are responsible for the majority of an index's or markets rise
• The number of individual stocks hitting new lows is increasing
• When a market violates its monthly bull market trend line
• Bull Markets tend to end when things look great
  • Low unemployment
  • Economic Growth
  • High Stock Markets
  • Positive news articles
  • Low defaults and delinquencies
  • High credit scores
  • Positive Consumer Confidence

• Market tops occur when there is no more money to put into a Market

Other Indicators to Help Call  Market Top:

• The KBW Nasdaq banking Index can serve as a market top . May peak before or at the same time as broader markets
• The Dow Homebuilding Index can serve as a market top. May peak before or at the same time as the broader markets