Market internals such as breadth and volume continue to negatively diverging from price behavior, indicating that the bull market is losing upward momentum.
These breakdowns in market internals tell us that distribution is taking place and that market participants are becoming more risk averse, suggesting that the uptrend has become vulnerable to a breakdown. As always, it is important to remember that a long-term top is a process, not an event. Now that the latest ITCL is in place, the character of the advance during the next several weeks will provide an important assessment of bull market health.
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