A formation (one type of top) that takes place at the end of a sustained bull market run. More specifically, it is a topping out of the market situation that arises, in a single security or the whole market, when a period of generally rising prices (uptrend move) suddenly runs into a surge in both price and volume followed by a surge in opposite direction with an equal magnitude. Towards the end of the uptrend move, the market surges higher, with very limited corrections.

This situation is usually caused by release of news and is fueled by a sudden spike in buy orders when the short-sellers change sentiment from bearish to bullish (in the middle of price uptrend). However, the situation runs into selling as traders embark on profit-taking rounds on the long side, along with a new surge in short-selling.

During such a formation, technical indicators run up to overbought readings, which seem to be temporary (unsustainable). Nevertheless, the market edges yet higher, defying mainstream expectations.