In October 2007 the Dow peaked @14198, from February 2008 it then fell back to a low @12069, then going into an August 2008 close @ 11543, from there it subsequently collapsed and fell to it's March 2009 low of 6470.
Currently the Dow has now reached June 2008 ranges (June 2008) high @ 12638
The 12000 is a psychological resistance as the bear market started in June 2008, and as discussed began to sell from the high @ 12638 (Jun 2008) , or course the question is can, despite the Federal Reserve insistent effects via Permanent Open Market Operations, maintain an upward momentum with the Dow and S&P 500. The answer is unclear, as currently both POMO injected liquidity and High Frequency Trading (HFT) are maintaining/supporting trading ranges. But the reality is that both the Dow and S&P500 are overbought and a correction is due. Several, if not a collection of coincidences or triggers will initiate a sell of both the Dow and the S&P 500 (and other indexes).
As discussed in Panic trades coming up: major oil, copper, gold, stock corrections, one should watch for a possibly sell either via extreme risk based initiated losses, or HFT programs selling hard on a fear sell (geopolitical/social/political unrest).
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