September 3, 2020, 12:45 pm EDT
Warning Signals for Top-out and Reversal
It is time to get an alert and warning for potential top-out and reversal to downside today as DJIA -700 points and Nasdaq down -4.7%.
Excess splits from AAPL and TSLA and overheated ZM, NFLX, GOOGL, FB, AMZN, MSFT, AMD, NVDA were evidence that top is near. Please note that climax run is a sign for the end of the rally.
This rally, about 60-80% for all major indexes in the last 5-6 months, was a historical run after a drop earlier in 2020 due to COVID-19 pandemic. Government assisted stimulus and dollar pump injected most of the gains into the stock markets, housing markets, and business.
But, the party cannot run forever. Having a sharp and broad selloff is a major warning to prepare for potential top-out and reversal.