5 Signs the Stock Market Has Reached a Tipping Point

An old investment saw goes like this: "Market tops are processes, bottoms are events." This means that in the stock market, it takes time for all the moving parts to top out and head lower. It's usually a gradual affair, unlike major bottom that are often marked with panic selling and sharp moves.

The market can easily shrug off events that could hurt it, such as a wide miss on economic growth or unusually weak housing statistics. However, when major issues start to accumulate, before we realize it, we've hit a tipping point where there are too many changes for the bull market to handle.

Let's be clear: We are not trying to pick a top or master market timing. But investors should take action when it becomes clear things have changed for the worse. And the sooner we recognize that change, the better.

Here are five signs investors should look for to gauge the likelihood of a stock market top. They're not set in set in stone - what was effective at one peak might not be effective for