Well hello there index at 6800; nice to see you again!

Index jumped 0.9% to  6804. Breaching 6800 as a psychological resistance is significant, although chartists will be quick to retort that 6880 should be the resistance to break. Why?

Pardon, this is amateur charting...

1) if it's going to be a head and shoulder pattern, the resistance will be at  pink line, which is at 6880. A small correction should happen once index hits 6880.

2) if the index easily breaches 6880 in the next days, TA believers will pour in because it's probable that we'll go back to record high (or near it, or at least easily breach 7000 again) to complete a malformed inverted head and shoulders.

I will not vote between any of the two. And I will mention opinions about Technical Analysis in general as I attempt to do deeper blogposts in the future. At this time, suffice it to say that the market needs to be closely watched and that foreigners should come back, and that one should be updated with Bernanke all the time.

Also, keep cash positions. Dont go all-in. How much % cash is good? Depends on you and your amount of belief on your stock selection--or the company you are putting your money in.