The market backed off a bit yesterday afternoon the instant that the Dow touched 8,500. It appears that the Dow is just bouncing between its 200 DMA and 8,500, which is its ‘war rally’ highs. The Dow is still trying to accomplish what the NASDAQ and S&P have already done — surpass its ‘war rally’ highs. I’m still not convinced that the steepness of the market’s rally can be maintained. I’m still holding my short positions, but that may not last for long. I gave back a good chunk of my profits yesterday, so I may have to get out today, while I can still eek out a small gain.
