If it breaks to the upside, going by the chart forces, there's not a lot of room to rise. Unfortunately, if it breaks to the downside, there's a whole lotta room to fall.
And by the way, there's nothing mysterious or magical about charting or technical analysis. It's just an illustration of buying pressure versus selling pressure in GUI format. Right now the two (buying and selling) are about even, and they're pushing prices back and forth within a narrowing range on shrinking volume. Common sense tells you that, sooner or later, it's going to break out and go somewhere. Whether it goes up or down depends on whether we have more optimists or pessimists, bulls or bears.
That's what we're waiting to learn, us plus the rest of the world.
On another note — this is not a new post (it's from 2010) but there's a ton of sense in its message. Here's Gonzalo Lira in Business Insider:
The Coming Middle-Class Anarchy
They got this on the front page, too, by Sam Ro:
The stock market is making sense for the first time in 3 years
Zero per cent interest rates are being priced out of the market. Despite the price war dance going on, this is a good thing. The markets are returning to something approaching normal, and that can only help the overall economy.
Thanks for stopping by. Cheers and happy reading,