Time to Head Down?

Is this silly rally over yet? Hard to say. As you can see from the chart, the upward thrust over most of the past week started to weaken, and the sharply ascending trendline has been broken (this particular chart is the S&P 500, but most of the big indexes look similar).

The resistance levels reached Friday must not be broken if the bears are to maintain their optimism that the swoon will resume. What we ultimately want to see is the lows set late in April cracked, and the Dow 30 to get beneath the psychologically important 10,000 level. Until now, it's bounced off it.