The market decided to take a breather today as it is approaching strong resistance 12,300 level with additional resistance 12,700 – 12,800 for the DOW as indicated below.  We see that the market is losing some steam as all four of the shorter term indicators for the NYSE have all turned to rows of O’s.  The Bullish Percent is however still in a accumulation mode with it being in X’s and below 70.  So There is potential for some additional upside to the levels indicated above before a turn to the south. 

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There are several bearish signals adding up here indicating there could be pressure to the downside over the near term. 

With the RS readings below, we see than the US market has had the strength recently against the Bond and International markets.  The strongest sectors as you can see below are energy, consumer services, and the Industrials. 

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