What is the best indicator for identifying a market downturn?

There is no specific best indicator. You should not focus on finding the best indicator for a downturn, support, or an entry. Price is the best indicator, perhaps with 80% price and 20% volume. Indicators such as EMAs and anchored VWAP (AVWAP) are calculated from price or volume. Recently I disliked the extension and volume spikes in some leaders. A stock can continue higher, but it can't go up forever at that volume and pace. A 30% gap-up in a mega-cap with huge volume is especially concerning because the volume matters as much as the percentage move.

Source: Holiday time | 5 Jun 2026