S&P creating topping pattern like 2000 & 2007?

by Kimble Charting

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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!

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