The following charts for the SP500, Nasdaq 100 and the DJIA show how these indices are bumping up against trend line resistance with declining momentum highlighted by the MACD histogram. Presently, there is no clear indication the market is reversing. Since the market has not shown any sign it has reversed, it would not be wise to go short at this time. In the meantime, I will be tightening up the stops for the longs to lock in profits and/or to preserve capitals. I am not eager to establish new long positions until the approaching resistance has been broken and tested.
Notice the price channels drawn in the following charts. If these price channels hold, then the likelihood of a near term reversal is high as the indices retrace from the resistance level.
SP500:
DJIA:
Nasdaq 100:
