Definitely agree with the sideways action their nine lives. If...

Definitely agree with the sideways action their nine lives. If one just takes a cursory glance at your chart you can see in approx october 2009 ( the first of the 3 peaks ) that this point is basically identical to where our current market is now... so the market has basically gone nowhere in just over 18 months.

Looking at my own metastock chart for the XJO ( sorry all but Im not to savvy with applying my charts into this forum yet ) I can see that both the 200 EMA and the 50% fibonacci level are basically identical around the 4725 - 4735 mark. This is where I will anticipate a little support and where I may switch from short to long.

The market overall however I believe is at the whim of the quantitive easing measures of the US. One just has to go back to the dates when our friend Mr Ben Bernanke made the announcement for QE1 and then QE2 to see how much this has artificially pushed the equity markets higher.

Although I initially thought the market may crash once this has stopped I get the impression that Bernanke will slowly cut back on the QE so as to prevent a mass exodus from the equity markets and this may well turn into a semi-controlled downturn... but then again there are so many potential black swan events lurking in the shadows it wont take much for things to degenerate very quickly...