US stocks are showing ominous signs: the number of stocks hitting new lows in the S&P 500 continues to rise.

Institutional analysts say that while the US stock market appears unstoppable, investors should not be complacent, as several indicators suggest this rally is more fragile than it appears. In the long run, the US stock market's rise is becoming almost parabolic. A straight market move is fearless—which is usually a warning sign. However, predicting the market top is a futile game. Unlike market bottoms, which often dramatically form a V-shape, tops are a long process that can last for months. But this doesn't mean there aren't signs that a top is forming, and investors should begin to be more cautious, or at least skeptical, about this rally and reduce greed. First, the number of stocks in the S&P 500 hitting one-year lows has been increasing. In fact, this divergence has reached unprecedented extremes. Second, there are also many potential stock sellers. The proportion of stocks held by US households in their financial assets has never been higher. When households buy stocks in large quantities, it often pushes valuations above sustainable levels and leads to a period of prolonged poor returns. This is another reason to remain cautious in this market. (Jinshi)