Huge QQQ Intraday Reversal Suggests The Top Is In

Day by day it is becoming clearer to me that the stock market is in the last throes of the great bull market that began on March 9, 2009 – “7 Stocks Are Propping Up The Market And We’re In The 9th Inning”, Top Gun Financial, Saturday 11/20

On Saturday morning I wrote what may turn out to be a prophetic blog. In it I argued that strength in seven stocks was masking massive weakness beneath the surface and that when those seven stocks topped out the bull market would be over.

Those seven stocks are Apple (AAPL), Microsoft (MSFT), Google (GOOG/GOOGL), Amazon (AMZN), Facebook (FB), Tesla (TSLA) and Nvidia (NVDA) and they dominate the Nasdaq 100 ETF (QQQ), the most important security in the market. Well, sure enough, the QQQ rolled over Monday closing below $400 at $399.30 – 2.3% below its morning high of $408.71. This kind of large intraday reversal on heavy volume often marks a trend change.

Overall breadth on the NASDAQ – the leading index – Monday was 1,716 Advancers to 3,017 Decliners. 213 securities made 52 week highs while 554 made 52 weeks lows (more than 10% of all securities traded on the exchange).

If I’m correct that the top is in, we should see downside follow through shortly.