The stock market has gone higher, consistently for years. Corrections have been non-existent, especially recently. Most investors think major even numbers have little to do with a top or a bottom on a stock, but I believe differently. Investors must realize that the stock market goes up and down on emotion. Essentially, stocks trade based on human psychology. This is actually a very key component to why even numbers are so key in tops and bottoms. The human condition associates even numbers with either overbought or oversold. A stock at a high even number will come across to investors as expensive while a stock falling sharply into a low even number will come across as cheap.
For example, Amazon (AMZN) and Alphabet (GOOGL) just crossed above the $1,000 per shares level. On a psychological level, $1,000 is a daunting number and investors tend to look at it and think "I will not buy now", or "It is now time to sell". If you look at the major stocks that are driving the stock market in recent months, many others are crossing or near crossing major even numbers. Not only has Amazon and Alphabet blasted through major evening numbers but Apple (AAPL) recently crossed the $150 level and since then it has stalled and is actually starting to fall. Facebook (FB) has also crossed the major psychological $150 level and stalled in recent weeks. Another major player in the stock market rally has been NVIDIA Corp (NVDA). The stock is currently trading over $148.00 and nearing the major $150.00. It is my prediction that once NVIDIA crosses the $150 level, all the key drivers of this massive tech stock market rally will have a psychological sell and it should create a stock market top. This will likely happen in the coming days.