think of your market as a machine that is currently going up (bull market). But sometimes, not all parts (stocks) are going up at the same time. Some go up while others go down. So, when the total number of parts going up (new highs) is going down, and the number of parts going down is going up, then the machine is at risk of breaking down.

To keep track of the number of parts going up and down, we use a few tools (breadth indicators) such as:
1. 52-week highs: This measures how many stocks are reaching their highest price in the past 52 weeks. When this number goes down, it suggests the bull market may be running out of steam.
2. Percentage of stocks above their 200-day moving average: This measures how many stocks are going up in the long term. If this percentage goes down, it could mean the bull market is losing momentum.
3. Bullish Percent Index: This measures how many stocks are showing a bullish signal on their point & figure charts. If this percentage drops below 70%, it might signal a market top.

So, we look at these tools to see if they're showing signs of a decline in market strength, which could indicate an upcoming market top.

And remember, this isn't financial advice, just an explanation of how we might think about market breadth indicators in a very simplified way. Read from source...

Reason and logic took a vacation for a while.

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1. In the current bull market, the domestic stock market has shown a significant upward trend, but the proportion of new highs has decreased, which is a sign of market vulnerability. Therefore, we advise investors to pay close attention to market trends and act rationally.

2. In the context of the COVID-19 pandemic, the global economic recovery is still uncertain, and international conflicts and trade tensions are escalating, which can easily lead to market fluctuations. Investors need to consider multiple factors and cautiously choose their investment direction.

3. The "tapering" policy implemented by the Federal Reserve is expected to continue, which may cause a slight increase in interest rates and affect the domestic bond market. Therefore, we advise investors to pay attention to bond market trends and adjust their portfolios in a timely manner.

4. The domestic real estate market has shown signs of cooling, and the future trend is uncertain. Investors need to carefully assess the risks and returns before investing in real estate.

5. The domestic gold market has been stable in the short term, but the long-term trend is uncertain. Investors need to pay close attention to gold price trends and choose the appropriate time to invest.

6. Investing in high-tech start-ups carries high risks, and the success rate is relatively low. Therefore, we advise investors to carefully select projects and conduct thorough research before investing.

7. The domestic tourism industry is gradually recovering, but it is still facing many uncertainties. Investors need to carefully assess the market trends and potential risks before investing in the tourism industry.

8. The global oil market is highly volatile, and the future price trend is uncertain. Investors need to pay close attention to oil price trends and adjust their portfolios in a timely manner.

9. The current global economic recovery is still uncertain, and there are many risks such as inflation, interest rate hikes, and currency fluctuations. Investors need to pay close attention to global economic trends and adjust their portfolios in a timely manner.

10. The domestic insurance industry is facing fierce competition and the pressure of profitability is increasing. Investors need to carefully assess the market trends and potential risks before investing in the insurance industry.

These are just some investment recommendations and risks. Please consult with a professional investment advisor before making any investment decisions.