Wednesday, January 09, 2013

Pausing at the top?

After the announcement of the New Years Federal budget deal, the S&P 500 index rocketed up to the overhead resistance line near 1460 - and there is has remained for the past five trading days.
 This rapid rise and subsequent stall look bearish for the short term.  In addition, market sentiment, money flow, and volatility all point to a bearish forecast.  The big question now is whether the market will put in a simple correction like the one following the September-October top, or something bigger that will allow me to make use of a bear market fund.