When stock prices are high and volatility builds it may well be a sign of a market top.
I outlined for subscribers last weekend stock patterns from the top of 2007 to the current period that seemed “similar”.
The major difference of course was the current heavy liquidity overhang from Fed QE and ZIRP monetary policies.
Chart A & B are monthly charts of SPY addressing pattern similarities. The key in 2007 was the break of the 12 period monthly moving average which isn’t seen yet currently in 2005.
So what might tip markets over this time? Much inflated stock