The chart says it all. It will most likely either break out and have a blow off top before collapsing back down through or it will simply round off the top here and roll over. This is like Ground Hog day for the markets. If the herd cannot break through this resistance fairly soon now and with gusto, it will begin to mosy south hoping that nobody notices them heading for the door.
If the herd does break through with gusto the big players will stay in the market but they will begin using trailing stops. At some point the stops will all get taken out at once which is what causes such dramatic reversals to occur after the formation of blow off tops.
No matter how you count it, this bull market is likely in the 9th inning. I suspect what will happen is that the loss of just 10 billion per month stimulus will begin to disquiet the herd. Then Yellen will see this and do something to try to undo it without appearing to have done so. In other words, not likely adding QE stimulus back on because that would be loss of face (and confidence is everything when you are running a con game). But the markets will not likely be willfully fooled by it as they have been with all the other QE crap so far and they will take it as a loss of confidence anyway simply because the market will be ready to turn south. The fed will be astonished because what used to work so cleverly will no longer work and the fed has no other tools at its disposal.
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