I'm not much of a technical analyst so please forgive me for my ignorance. So all we hear in the popular financial media at the moment is about the broad market returning to the old 2007 highs, (and then obviously making new highs from there). From a technical analysis point of view what exactly is supposed to happern? From what i remember i read two conflicting accounts with different reasoning. Any ideas?
It's psyco babble. The market has long term memory? In a rats ass. What are the comparative values of the dollar 2007 to 2913 I remember how long it took for the dow to return and finally break through the 1000 "barrier". Personally I consider ALL financial news as ADVERTISING!
After it happens, I will analyze it and will tell you why and what happened and everyone would agree with me and woul tell it was obvious.
Based on everything I've learned here, what happens is this: When the market is just about to break to a new all-time high, all the buy and hold investors who did not get shaken out during the Crash of 2008, plus everyone still holding who bought between March 2009 and the moment that price is just about to break to a new all-time high will prepare to sell as soon as price breaks out. They will all be able to get filled profitably because there will be plenty of liquidity provided by shorts' stops getting triggered to market as well as everyone who sold during the Crash of 2008 deciding to get back in the market because it's making a new all-time high.