$INDU update - 07-18-2010

The DOW has managed to climb back above 10,000, but the last two days have seen the bears take hold of the market.  The charts are looking quite bearish as the moment.  The market must break the pattern of lower highs and lower lows if the trend is to reverse.  The bulls are looking for any positive news that can help reverse the trend, yet it seems as if every rally is another opportunity to sell.  I continue to stay in cash for the time being and watch the market for signs of reversal or an opportunity to go short if critical support levels are breached.