9. A Wyckoff/Lowry Analysis of the 2000 Market Top

The 2000–2001 Market Top According to the S&P 500

It’s springtime 1999, and all seems right in the stock market. Tech stocks and, in particular, just about anything associated with the Internet are making overnight millionaires. Analysts are projecting the sky’s the limit for earnings, the economy is strong, and grandmothers have turned into day-traders to make a little extra cash and maybe strike it rich. But over the summer, observant investors notice something troubling. The rally in the S&P 500 stalls in mid-July, and on the following pullback into mid-October, something unusual happens. NYSE volume shows a distinct rise as the pullback proceeds. At the same time, the Selling Pressure Index ...

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