Courtesy of John Nyaradi.
With new record highs being set nearly everyday, could we be close to a stock market top?
During the past few days, how many times have you heard the phrase “all time high” used when a stock is discussed? On Thursday, October 24, there were nearly 200 stocks reaching their all time highs during that session alone. Keep in mind that October 24 was one of those rare days when no major stock index hit a record intraday high or closing high.
On the other hand, no major stock index finished in the red on October 24. It was just another day in the life of the quantitative easing-fueled stock market.
In light of the fact that the Dow, (NYSEARCA:DIA) the S&P 500 (NYSEARCA:SPY) and especially the Russell 2000 (NYSEARCA:IWM) are hitting record intraday highs and record-high closing levels on an unusually regular basis, one begins to wonder when – or if – the stock market will finally reach an impenetrable threshold of overhead resistance.
What signs would an investor expect to see if the stock market was finally reaching such a “top”? More importantly, are we beginning to see those signs now?
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