Do we hold or fold.

Today the S&P 500.

Over the past five trading sessions, we experienced fractional new highs above the January 6 high of 943.85 without experiencing follow-through to the upside. Given today's retreat off the highs, it is a distinct possibility of an reversal pattern to begin. The Mac turned negative on a daily basis. Giving the failed follow-through, the probability of a dramatic decline to take place has increased. Although it is normal for markets to take two steps forward and one step back before going to higher highs. We have been at this level before. January 6 at 943.85 comes to mind.
There are many experts on the various financial channels that believe we are in a bull market, and they could be correct. However, with rising unemployment, and declining real estate values, along with a credit crisis for small businesses. The economic engine for the US economy appears to be somewhat muted. All small businesses are experiencing a continuing credit crunch with lines of credit being closed and interest rates increasing further hampering the cash flow of small business nationwide. There is no compelling reason for small businesses to take risks or consider hiring new employees. The changing tax structure for small business and uncertain regulatory environment is a negative affect on risk-taking. Over the coming weeks, but especially the coming days we will have a much clearer picture to the direction the market will go to. Send me your thoughts?