Market Top

Parent term
Market tops signify the point when markets reach their highest point before turning downward into a bearish market

Signs of A Market That is Topping
  • 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

    Other Indicators to Help CallĀ  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