The market is supporting two contrary technical patterns.  The first is bullish.  The market is starting to break out of reverse head and shoulders which projects a Dow of at least 10,000

For this pattern to be ideal we need to see some good volume on the breakouts. The second pattern is bearish.  We also have a descending rectangle trading range and we are approaching the upper trend line.

If this pattern is in force we will soon hit resistance which will send us back down maybe even to a new low.  The very high McClellan argues that we are due a short term correction.  To make it even more confusing, maybe both are in effect, we break out of the reverse head and shoulders, hit the upper descending rectangle trend line, then drop back to the head and shoulders neckline, and then head up.

Unfortunately, we wont know which pattern is valid till after the fact, so all we can do now is be aware of both and sit back, watch, and follow the market where it leads us.