Toppy

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DEFINITION of 'Toppy'

A slang term used when markets are reaching highs that are unstable, and therefore a decline can be expected. In the U.S. the Dow Jones Industrial Average, the Nasdaq and the S&P500 are all used to gauge the overall market. The term "toppy" is used when these indexes are rising, but there is analyst sentiment indicating a potential decline.

INVESTOPEDIA EXPLAINS 'Toppy'

The market moves in cycles along with the economy. The indexes (representing the stock market) will climb to new highs then fall back down. The fall is known as many things such as a pullback, a dip or a retracement. Before this fall, analysts use the term "toppy," meaning that the market is reaching a top and might come back down.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Cyclical Risk

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  3. Market Sentiment

    The overall attitude of investors toward a particular security ...
  4. Retracement

    A temporary reversal in the direction of a stock's price that ...
  5. Peak

    The highest point between the end of an economic expansion and ...
  6. Pullback

    A falling back of a price from its peak. This type of price movement ...
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