This is a nine year chart of the SPYs. Notice how the high reached nine years ago has provided a ton of upside resistance to the market.
Here is a 6 month chart. Notice how since the early October highs the market has made lower highs and lower lows? Also note the market broke through the 200 day SMA yesterday on strong volume.
Also note what is happening in the markets right now. There is a ton of bad news that is sinking into the overall trading psychology. The housing market is dropping with no end in sight. Financial firms are writing down mortgages -- literally every big firm has had to do so. Oil is spiking and the Christmas shopping season is around the corner. In short, there are a lot of reasons for the market to drop right now.
I'm on Linked In and Twitter (@captivelawyer). Silver Oz's Linked In name is @silver_oz. NDD is a fossil and may be reached by etching a picture in stone on the wall of a cave.
The Bonddad Economic History Project
At the beginning of 2012, I decided to start looking at the actual, statistical history of the US economy starting in 1950. The reason is simple: to find out what really happened. So, when you see title of a post that begins with a year such as 1957, followed by "employment" or "Fed policy: you know what it's for. You can also access the information by typing in BE for Bonddad econ and a year to find information on a particular year.
Here is a link to pages that contain links to all the posts on the years listed.