Daily Chart MACD histogram ticking down indicates reversal
Daily MACDH indicates a negative bearish divergence when the price goes up but the histogram goes down. This signals that a reversal could be close at hand. also, today (5/8/2007) there is a Doji candlestick which indicates indescision & usually a reversal. but on the other hand this is a pre-presidential election year & in 9 out of the 10 past pre-election years the DJIA has gone up. corrections are healthy for the market but we did just have one a few months ago. also it was reported on CNBC that buying by the public is NOT pushing the market up (institutions are) & according to DOW Theory there is usually frenzied buying (institutions selling to the public) at market tops by the public (where the public usually gets left holding the bag hence the term 'bagholders'). there are also other factors that don't indicate a market top so do your research. in this type of unpredictable situation it pays to be ready to bail out at a moments notice. remember that bulls & bears get fed but hogs get slaughtered!