6000 was such an obvious short for the short term that its bound to pull back from there. I have shorted the 2 peaks above it successfully in the past few days. We could well drop down to the 5750 level, and there are some ill winds blowing on the China news front http://www.telegraph.co.uk/finance/china-business/8232336/China-slows-as-tightening-start-to-bite.html so it may drop further. However, later in the year we will pass 6000 I am sure. I am actually a little bullish for 2011 now.
I must admit I took a lot of profit off the table on individual shares (and a China fund fortunately!) on Christmas Eve – I expect quite a few others have as well so a drop from the 6000 level is not totally unexpected. John commented on the post below that the Dow has hit a key fib level that may mark the end of the 5th wave up – often the big one, so may signify the end of the rally for the time being.
House prices rose in December, ok not by much, and its often worth taking things like that with a pinch of salt, but to the average person in the street it is designed to shore up a bit of confidence. Retailers didn’t appear to be that busy but there were record numbers shopping online this year. I expect retailers may be in for a bumby 2011, but gas and electricity supppliers will do well