A third period of heightened volatility shouldn't surprise us. Consider this chart of the SPX (S&P 500) over the past two years: take a look at the relative steepness of each of the red lines (rallies), the duration of each rally (purple lines), the blue boxes (volatile spots of bother) and the green line (market has gone nowhere for 19 months as every rally to new highs drops back to or below the high of January 2018). As the saying goes, a market topping is not an event, it's a process. There are a handful of historically useful characteristics of topping markets: 1. Declining volume / liquidity 2. Increasing volatility--major swings up and down that increase in amplitude and frequency 3. Inability to break decisively above previous resistance (i.e. make sustainable new highs in
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