U.S. stocks release "ominous signs": the number of stocks hitting new lows in the S&P 500 continues to increase.

According to news from Coin World, institutional analysts indicate that the U.S. stock market seems unstoppable, but investors should not be complacent, as several indicators suggest that this rebound is weaker than it appears. In the long run, the rise of U.S. stocks is becoming almost parabolic. A straight market trend is fearless — this is often a warning signal. However, predicting the market top is a futile game. Unlike market bottoms, which often dramatically present a V shape, tops can be a long-term process that may last for months. But this does not mean there are no signs indicating that a top is forming, and investors should start to be more cautious about this rebound, or at least skeptical, and reduce greed. First, the number of stocks in the S&P 500 index hitting a new low in a year has been increasing. In fact, this divergence has reached unprecedented extreme levels. Secondly, there are many potential sellers of stocks. The proportion of stocks held by U.S. households in their financial assets has never been so high. When households buy stocks in large volumes, it often pushes valuations above sustainable levels and leads to a prolonged period of poor returns. This is another reason to remain cautious in this market.