There are several ways to spot a potential market top. One way is to see the action of past momentum stocks. If the market tops, those momentum stocks should have wide range and started to break down or forming some header/shoulder, double top pattern. A lot of selling can be seen during past several days if market tops.
Look at the universe stocks with the liquidity condition, use MDT month ago to sort the stock list, then look at the action of the top 100 momentum stocks. At current stage, a lot of momentum stocks are holding very well and in some kind of sideway moves. They do not have any sign of breaking down. This indicates that currently market is in a pause stage lack of momentum. If there is a good upside thrust, market will continue going up.
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