CLICK ON CHART TO ENLARGE
Did the topping patterns in 2000 & 2007 have anything in common? Yes! While the S&P was hitting nominal new highs in 2000 & 2007 at each (1), monthly momentum was actually heading lower at each (2).
Of late the S&P is hitting new highs, while monthly which was recently higher than the 2000 & 2007 peaks has been turning lower.
Odds of the S&P repeating the 2000 & 2007 highs? Low!!!
Impact if it would be topping again? High
Bulls might want to keep a close eye on what the S&P does in the next few weeks due to momentum turning lower!