On 17th Dec 2010, looking at the closing price on DJIA, I believe some large operators are quietly unloading long postions on strength and actively taking profits. Such price tightness often precedes a sharp move. However, the longer the market stands motionless, the more suspicious the situation becomes. Transactions took place from the strong holders to the weak puclic holders. Public was buying thinking that the market is going higher and operators are constantly feeding them their offers. The market may be due for a correction before further rally can continue. Prices might be too high to sustain longer and therefore large operators would need to bring it down before they are allowed to buy more. There is no way that operators would continually buy at high prices unless the market condition favours the bulls. The following week's action shall verify this belief. Of course, i could be wrong, for now we wait and watch.
Ronald K
