At market top, technology leads the rally while big cap stocks lags, and that is precisely the condition the stock market is currently in, with Nasdaq leading to the upside and the Dow and S&P 500 still lagging behind, still trading below their respective March swing high.
This is precisely the market configuration at the 2000 market top and at the 2007 market top before brutal bear market sets in. This time it will not be any different. The only question is the precise timing of the first official bear market down leg.
Buy programs continued to target a few large cap technology companies just to paint a very rosy tape to get more investors trapped for the fall, and it was Apple on Monday. Market breath continues to get worse.
NQ is in deep overbought level on the daily chart, but buy programs remains very active and is likely to continue on for a while until some unexpected outside event triggers selling, and because almost everyone is now long the market and just enjoying the benefit of buy programs powers by free money, trailing stops would turn into selling, and the market crashes. Until then, everyone is onboard for the bull ride.
