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I have not been posting a chart for a while and mainly because of the current market position, I think it would be nice to take a look at the location of the indexes in relation to the previous support and resistance levels. On December 20, 2009 in my "DJI" post I already referred to the DJI (Dow Jones Industrial) longer-term charts. See below the DJI chart (chart #1) I posted at that time.
At that time when the up-trend was in the its full force, I alerted that the stock market is entering the sensitive area. Maybe I sounded funny when I expressed a possibility of side-way trading at the moment when the stock market up-move looked unstoppable, yet, I would like to show continuation of the same chart (see chart #2 below). I think, now you my try to analyze by yourself about a possibility of long-term side-way trading.
I do not want to state that the stock market will bounce up to to its April's highs - additional analysis on lower time-frame would be recommended for this. The DJI index has already been in this sensitive side-way corridor for about 8 months. It could be the end of the side-way trading or it could be in the middle. From the charts above you may only say that the current movement is more volatile than the side-way trading trading in 2004-2005, yet it less volatile than the side-way trading 1999-2001. Still if the indexes (DJI, S&P 500 and Nasdaq 100) bounce up - it will be the first bounce up only in this historically defined sensitive sideway corridor; and at this moment, my personal technical analysis confirms that such scenario is quite real.
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