Market Tops and Bottom
A market top (or market high) is usually not a dramatic event. The market has simply reached the highest point that
it will, for some time (usually a few years). It is retroactively defined as market participants are not aware of it as it
happens. A decline then follows, usually gradually at first and later with more rapidity.
A market bottom is a trend reversal, the end of a market downturn, and precedes the beginning of an upward moving trend (bull market).
It is very difficult to identify a bottom (referred to by investors as “bottom picking”) while it is occurring.