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The market battled back impressively over the past week and a half and is re-testing the 10,600 resistance level that gave it so much trouble in mid-June (and May and late March).

With the CMF poised to move into positive territory, the PPO already positive, and the 50-day MA about to move above the 200-day MA, the technical signals look pretty good right now, but here's where Technical Analysis becomes more of an art than a science. Notice that on Friday, the Dow failed to climb above the high that it set on Thursday. Also note that Friday's volume was slightly below average. Experienced chart watchers know that those can be early warning signs that the current rally is fading, especially if those signs appear near an important resistance level. Because of that, my gut says that its time for a pull-back. Watch the markets closely on Monday to see if my gut or the technical indicators are correct!

Chip Anderson
About the author: is the founder and president of He founded the company after working as a Windows developer and corporate consultant at Microsoft from 1987 to 1997. Since 1999, Chip has guided the growth and development of into a trusted financial enterprise and highly-valued resource in the industry. In this blog, Chip shares his tips and tricks on how to maximize the tools and resources available at, and provides updates about new features or additions to the site. Learn More
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