3 Signs Stocks May Be Near a Top By MICHAEL KAHN
The trend is up, but investors should pay attention to indicators that, historically, have marked the end of a bull run.ArticleComments 3EmailPrintReprints smallerLargerTechnical analysis is the study of data generated by the market and the actions of those participating in the market. Price patterns and trends are by far the stars, but the supporting cast should not be ignored, even if it has been crying wolf for some time.Right now, the supporting cast of volume, sentiment and time may not be calling a top in the market, but those indicators are doing things that we normally associate with a pending change.
Let me add to the chorus.
Insiders can’t sell stock fast enough. They have all but abandoned this market. I blogged about this recently.
Many stocks are making 10-20% moves in one day on earning beats or warnings while the general market is treading water. This kind of volatility usually presages an uptick in the market volatility at large.
The bottom has fallen out of the Japanese yen in a very short period of time. There is nothing healthy about the collapse in the currency of the third largest economy in the world.
We’re getting technical bearish divergence on many indicators. Not a good sign for me.
It’s hard to understand what will derail the bull but that in and of itself is making me nervous.