One of my favorite indicators I’ve learned over the years is the Advance/Decline line vs. Market Price. If you look back through history, there is hardly any market top of significance that doesn’t have a strong tell of the A/D Line NOT making a new high when the general stock market makes a new high. In market technician jargon, this is called a “negative divergence.” Since we have markets at a new high AND the A/D line is at a new high, sometime in the future I would expect the A/D line to NOT make a new high while the market does. Therefore, I can confidently (95% level) state that I will expect the next “drop” in the market will return to make a new high, so buying the dip makes a lot of sense. Now, will the next high have confirmation from the A/D line? We’ll see.
Here is a link to a chart in StockCharts that shows both the S&P500 and the A/D line. Feel free to use it