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[nimblebear]

Could prove quite formidable resistance for 2014.

http://blog.kimblech...sistance-level/

Dow is hitting a parallel channel line that dates back 80-years. The 2007 high hit this line and the Dow was turned back, now its hitting this line again.

Not only is the Dow hitting channel line (A), it is hitting an 80-year Fibonacci extension level created off the 1932 & 2009 lows.

Will it be an important price point for the Dow as the 80-year parallel line and 80-Year Fibonacci extension level both meet at the intersection ???

With all of the overly exuberant bullishness coming out of 2013, and every sentiment indicator hitting quite rare air bullish peaks (like Dow 36000 and to infinity and beyond), it would not surprise in the least with highest margin debt on record, and P/E's also at nosebleed levels, if this market got sucker punched right back down into the depths of 2009.

On the otherhand, the FED probably knows this, and is tapering now, in order to stash some ammo for when it will be needed to double-down once again on QE to somewhere in the $150 billion per month vicinity.

Gold's been beaten down badly for 2 years now to allow bigger money to square some new positions....on the long side. Simultaneously gold's lowered prices have given the illusion that all is well, inflation not an issue, and a flight to safety is not going to be needed heading forward.

Things could be velly velly interesting this year.