There are many signs that the markets will do well in 2024. Statistics that say a presidential election year where the person in office is running again. Seeing small caps and equal weighted indexes hitting new highs. AI chip stocks continuing to hit new highs. But then, there are early signs that show the party will end.

First, you have $AAPL lagging the markets and possibly having a H&S formation.

Global risk demands hitting greed levels

$GOOGL is below its 50 day moving average

And when you look at $TSLA, the stock hasn't recovered from its November 2021 highs.

With some of the leaders struggling to join in on the fun in the market, eventually, the rest of the crowd will struggle to make new highs and keep the party going. $SMCI could see struggle on the horizon when it joins the S&P 500, a decision I disagree with and an event that exposes the dangers of blindly investing in index funds. $NVDA could see struggle as AI chip prices could plunge as each GPU becomes more powerful and as regulators crack down on their illegal operation to sell chips to sanctioned Chinese entities.

There are a couple things that could push the markets lower. One being the disappointment in the Federal Reserve for choosing to rule out interest rate cuts in 2024 due to sticky inflation. Another being the popping of the AI bubble. And there's also the concern that once the BTFP program ends, we will have another banking crisis as banks rush to sell their bond portfolios and realize losses simply to buy themselves time. For now, I've taken profits on many of my small positions and await the market's next move.