I'm neither a pessimist nor an optimist . . only a realist. This market has moved higher very quickly and needs a correction at some point. Right about now there are multiple resistance levels in most shares on the ASX and the xao/xjo. Plenty of shares are in over bought territory (esp. resources) and will likely holt for a while to catch up with their MA.
I don't know if we'll have a capitulation as most pundits predict but i think we will have correction. It wouldn't take much to have a capitulation . . say some bomb somewhere . . . and it wouldn't take much for further rises . . the capture/death of osama etc.
On resources both RIO and BHP have just now had island top reversals and are down >2% on the FTSE. If the resources where the leaders in the upturn they may well be the pointers to the next correction ?
