So why would such a scenario be so fitting for the current market we're in, you ask? Well, if I were to tell you that the Stock market is hinged on the performance of one stock, and that particular stock is in a parabolic, runaway move, would you be concerned? I know I would.
It would make sense for the strongest company of the market to have developed into a parallel uptrending channel which could allow investors to time an entry point on every pullback. However, the nature of the stock pattern suggests for a chase to buy. If this parabolic move breaks, and they all do, how would the stock market react? Even worse, right? So my point is, for the same reason the stock market has outperformed in these last several months may be for the same reason the stock market should undergo some turbulent times.
Oh and by the way, if you haven't already guessed by now, the stock is Apple.
Apple- Daily Chart
S&P 500- Daily Chart
Take that all you bull junkies out there!