Will it hold?

Hello David. Thanks for your comment. I agree that caution is needed here. (see comment on last post - no pun intended, but there could be a hidden message.)

The fact that you look at the evidence and find it points to a a top and I look at it and think a breakout is more likely is why the market plods along unwilling to do anything much. Buyers and sellers are matched and each side is trying to wear down the other. I see that two resistance levels have been broken on the Dow. Others see the failure to breach the 13000 level. Either side could be right. My modest optimism is just that: modest. Tomorrow I will go through my holdings and stop some losses and possibly take some profits. I have yet to decide whether going back into silver is a good idea now. Not only is it outperforming gold but it is much more volatile so there is much more danger.

A big part of tomorrow's work will be reviewing stock picking strategies. So my bullish mood continues unabated. Only a big drop in the Dow will shake that.

Just to keep my feet on the ground and to keep me worrying (worrying is best) I show two shots of the S&P 500 today. It shows a failure to break the highest resistance level and a break down through the next lower resistance level which should now be offering support. It has also broken down through a diagonal trend line support level that has held since the end of December. If those portents are to be believed it is a case of hold on to your hats. "It's a game, i'nit."