Resistances are lining up to knock the All Ords back

4450 - 4500 is a strong resistance level on the All Ords for many reasons. First, 4450 is a 50% retracement of the April high to the August low and we are nearly there. This will be the second attempt at the 50% retracement - the first occurred on 1 Sept 2011 which preceded a 550 point decline into the October low. Next, the 200 day moving average comes in at 4475. The area near the 200 day ma often acts as a support/resistance level. Third, the 4500 area acted as a strong support zone in June and July this year not to mention that it is near the low formed in March this year. Fourth we have a MOB ('make or break') coming in at 4500 and fifth, we have the ever reliable blue ellipse right on that level as well. That is all not to mention that traders just love false breaks and today we broke the downsloping trendline - will that turn out to be a false break? And of course the stochastic has found its way back into overbought territory just to put the icing on the cake. It is starting to look too perfect - the 'utopian sell zone'. If that is not utopian enough, we get the news today that in Europe the sugar plum fairy will grant everyone's wish and make the debt problems disappear. Of course the Dow will follow through with a strong night, tomorrow we will make a spike high opening, the smart money will back up the proverbial truck and load up the short positions and get set to make a killing. Could it be that easy? My gut feeling says no, that we are going to continue higher, but the chart says otherwise. By the way, today the XAO Indicator turned blue. This is the second time it has turned blue in the decline since April. In 2008, it turned blue 3 times in the downturn - 3 false starts - before finally getting it right the fourth time in March 2009. What's more, in 2008 the market had 2 cracks at the 50% retracement level (4/2/08 and 19/5/08) before it finally cracked itself and collapsed. Will history repeat itself? I don't know but Tim Finn (Split Enz) was in the news the other day. Was he signing History Never Repeats? Not sure.