1.First circle was in early 90's during dot com when it broke away from the channel that was the growth engine in broader economy which went parabolic and got peaked 1999-2000 bust.
2.Technicially speaking after having took of the channel it has to test the channel which it did that when fed fueled the house market in 2002 and which got peaked in 2007 bust.
3.So this time after testing the upper channel it got into the channel with 50% which was healthy then we had fed intervene into the markets in late 2008, And pumped the market with his printing press and now test the upper channel which is resistance was support before.Now we have to wait and see how it reacts for that we have to options:
a.If fed raising the rate will effect the markets and we will see downside in market and correct to 500-600 level to lower end of channel which is show on chart with grey line.
b.If fed still eases with lower rates then it will crawl along with the upper channel and stay with the channel as dollar devalues.
Good luck folks and enjoy trading.
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