Sideways

The monthly DJIA chart shows the current 50% retracement underway (alltime highs vs March 09 lows) with a target of about 10300. These charting basics, which most real traders use as trash, illustrate the trading pattern of the 30 stock index and the somewhat flat net overall performance of the last 10 years. The current rally off the March lows has been powerful despite massive investments in US treasuries by the entire world. Unfortunately for the bulls, money on the sidelines is obviously staying on the sidelines and probably will not find stocks quite as appealing for some time to come. So stock allocations to date and normal front running of the "sidelines" trade have little hope of escaping the continuation of the DJIA's sideways purgatory.