The 8 signs for Identifying a Financial Market Peak
1- Strong economy.
2- Preceded by rising short-term interest rates.
3- Rotation already moved to earnings. driven sectors. RS momentum of leaders rolling over.
4- Market breadth leads the way down.
5- Net new highs diverge negatively.
6- Long-term momentum peaking.
7- Confirmed by trendline breaks and negative 12-month MA crossovers.
8- Bullish sentiment.