Is the stock market finally topping out after nearly a year of relentless gains? Has the “mini-bull” market (which I continue to believe is little more than a secondary reaction in a primary, secular bear market) finally run its course? While you’d be hard-pressed to find a bearish comment in the mainstream financial press, to be sure a technical perspective of the market is flashing some major danger signs.
Going against an established trend is rarely a good idea, but when you have a confluence of factors indicating that a top may be imminent, it’s a good idea to pay attention. Currently we’re at just such a confluence. Let’s take a look at these factors one by one.