For nearly the last 12 months, the major equity indices have gone ... nowhere. We have been in a trading range and the overall gains are virtually non-existant. The problem is the volatility and the size of this range is giving a lot of fakeouts to both the upside and the downside. Neither bulls nor bears can claim any kind of victory here (I sure can't). And I doubt we will get any kind of market clarity until we break out of the range. As much as I like to predict things (and I do, I am a sucker that way :) ), this pattern exists for one reason only: to exhaust both camps. I personally think this pattern still looks "toppy" but dramatic reversals are now par for the course.
Have fun, but be careful.