Both the Dow and S&P have posted "gravestone dojis" on their weekly charts. The Dow looks particulary bad. But the Dow recovered from a similar candle pattern in mid June. The difference this time is that we have a significant resistance area, and that all the new highs made, were on low volume.
The S&P weekly, has broken the 1000 mark 7 times in the last 12 weeks but has never once closed above it (for the end of week). This resistance has now become even more psychologically significant.
With average P.E. valuations at 32 times (usually seen in a raging bull market) logic says these 2 markets will fall. I will be shorting these two Indeces on Monday with stops at Fridays High.
