As we roll over into the month of September, I can't help but be reminded of the roller coaster that was about to start in the markets almost exactly 12 months ago. Funny thing is, I have had several conversations regarding how "investible" this market is. We are, after all, near all time highs, and the economy is slowing down right? Right?
The fact is, a market breaking out to an all time high is a good thing, but I wanted to highlight 2 more points that are related to the attached diagram (it's a DOW chart FYI)
1- we are up a whopping 0.5% from almost a year ago on a rolling 12 month basis. Not a lot to get excited about so have things really advanced that much?
2- key support and breakout levels are very clearly defined, thus giving us marks to watch for
Now, charts are not the be all and end all of investing, but they are worth paying attention to. In the long run, short term advance/decline metrics are somewhat irrelevant, but depending on your investment time horizon, they can be critical.
Too much for a Tuesday after a long weekend?