• 703 days Will The ECB Continue To Hike Rates?
  • 704 days Forbes: Aramco Remains Largest Company In The Middle East
  • 705 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,105 days Could Crypto Overtake Traditional Investment?
  • 1,110 days Americans Still Quitting Jobs At Record Pace
  • 1,112 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,115 days Is The Dollar Too Strong?
  • 1,115 days Big Tech Disappoints Investors on Earnings Calls
  • 1,116 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,118 days China Is Quietly Trying To Distance Itself From Russia
  • 1,118 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,122 days Crypto Investors Won Big In 2021
  • 1,122 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,123 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,125 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,126 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,129 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,130 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,130 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,132 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

The State of the Trend

My fear that something positive may come out of Washington and change the natural ebb and flow of the market was grossly exaggerated. If anything, Congress' reaction to the financial crisis in 2008 taught us that one should expect the worst reaction at the worst time. What are the odds that things will be different this time?

The normal retracement usually associated with overly bullish sentiment did follow right on schedule and, according to the same study updated from last week, is fast approaching the opposite extreme.

Political games aside, the weekly and monthly trend remain up although dangerously close to breakdown levels.

The State of the Trend
Larger Image

The last chart, I believe, reveals the true nature of US financial markets during the last decade and a half: a continuous series of artificial bubble and bust cycles. While the debate over who and what's to blame for that may rage for awhile, the more important thing right now is to avoid getting caught on the wrong side of the next move. Keeping an eye on the support lines above will help immensely with that task.

 

Back to homepage

Leave a comment

Leave a comment