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The Dow annual chart since 1998: expanding wedge with price topping *15588.25 above resistance at end of 2013 - Ever since 1998, price started to correct in a multi year fashion after hitting resistance. So far, 2014 started below the 2013 Close and the market would be in for a multi year correction as usual
- If 'as usual' turns out correct, the 50% retrace *14967.27 is taken out convincingly, while massive support at this level will indicate the 'Super Bull' comes into full swing, turning the multi year upper resistance into the new support
One thing is for sure. The Fed since 2008 continued to support the banking sector by following its favourite philosophy of inflating assets prices to expand the mortgage loan market, corporate takeover loans and speculative “casino capitalist” loans for foreign-currency and interest-rate arbitrage as priority No.1
Less priority and highly conditional and still to be achieved, the Fed commits to its dual mandate of price stability and full employment via priority No.1 and the 'debt trickle down' effect.
As a consequence, the bull market will continue and move into the 'Super Bull' but a convincing break below Dow *14967.27 will turn the 'blue sky' expectations upside down
Kind Regards and a Successful 2014