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I don't know much about technical analysis. But uptrends have higher highs and higher lows, and downtrends lower lows and lower highs. A look at the current DJI shows that it is struggling. It's 1400 points down from its high last October, and maybe 950 above the low of January 08. I can't see any clear sector leadership. Many financials rallied this spring, but seem to be sinking back toward new lows. Oil and gas issues are off their highs. Big blue chips like GE and food stocks etc are marking time.
It is still well above the January low of about 11635. Ben has pretty well admitted that he is treating stocks with monetary stimulus and the recession if there is one at all so far looks toothless.
But price action and sector action looks weak. If we get a sharp move down through that January low, IMO it could go much lower, as it would likely signal the perception that Dr. Smug, aka Big Ben, has lost the game.
We may just be waiting for him to create enough inflation and dollar depreciation that some pricing power might return to American business.
So while nominal values might hold, they will be measured in heavily depreciated dollars.
Definitely interesting times!
Ha
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