As for the market, let’s look at the mid-caps, by way of symbol MDY. Here’s the short-term view, and as it plain to see, this bull run we’ve had lately has been the strongest, steadiest, and most annoying of the year. We are rammed up against the Bollinger band and the resistance trendline.
Taking a big step back, we can see we are miles away from major support, but we haven’t had enough weakness to even merit a journey there for years. I think one could at least conclude with a straight face that we’re awfully lofty now, and even if this bull market were to continue until the year 3298, the next few weeks could at least afford some profit-taking.
The very big picture shows that we’re at a fairly major decision point. The sheer momentum of the Internet Bubble and the Housing Bubble can both be scene here, but the present market hasn’t pushed us to the trendline of those extremes. We are actually dead-center between the very long-term trendlines. If we do have the good fortune of traversing back to the supporting line of the short-term pattern, the big question will be whether it holds or not. Of course, that seems like science fiction at this point, but if we get there, we can take a hard look as to what it would take to create a major support failure.
