Click on chart to expand
SPY is at somewhat of a crossroads here, with a bearish wedge and an ascending channel converging with the median line of an Andrew's Pitchfork. Many technical analysts have been shouting "PULLBACK!" for some time, but it's been a painful ride up for them if they got ahead of themselves and shorted the markets too soon. The markets have made fools out of a lot of bearish investors relying on either technical or fundamental data to make their decisions. Have we reached the point where the bulls are afraid to buy and the bears are afraid to short? It can be argued that either option has its drawbacks. There is something to be said about day trading against the High Frequency Traders (aka Algorythm Programs) in this environment: sleep comes a lot easier when closing one's positions at day's end.
