I personally think technical stock analysis is bullshit. But there are millions of people who believe this voodoo stock analysis. Well weenies, it sure looks like the Dow has broken below long-term support. Doesn’t that mean sell? This is where these supposed technicians will come up with some new bullshit reason why this should be ignored. I never tire of seeing “experts” create new storylines to sell their propaganda bullshit in order to rationalize why they are wrong. Everyone looks smart in an unrelenting bull market. The morons and shills are revealed when the bear starts to growl.
The Dow has struggled so far in 2014 – down 6.8% year to date. For some perspective, today’s chart illustrates the overall trend of the stock market (as measured by the Dow) since 2003. As today’s chart illustrates, the Dow has benefited from a strong upward trend since early 2009 (see upward sloping green trendline). This year, however, the Dow has sold off sharply due to concerns over steep declines in emerging markets.The Dow’s steep decline has been significant enough to result in a break below long-standing support (upward sloping green trendline).
