The market remains near the all time high territory while some of the recent high flyers starting to give way. Many that have been benefiting from this prolong market run up feel they are invincible. This is typical in a market that has gone so far without a major shakeout and near the climax phase.
Some believe the market has already topped and getting ready to go down 10-15% from the current level. But the market has not indicated this party has ended and those that have been calling the top will likely be part of the herd that will help form the top.
Subtle signs are beginning to appear telling us it is getting close to the end. One of the sign is the shift toward certain category of stocks. For the market watchers, they see the recent interest in stocks such as IBM, MMM, CAT, KO, INTC as a shifting of sentiments and not a sector rotation. As the sentiments shifted toward safety and quality, that is when one needs to be very cautious on chasing those speculative stocks and the IPO madness.
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