The State of the Trend
Most are probably familiar with the quote attributed to Einstein that insanity is doing the same thing over and over again and expecting different results. The financial version of insanity is expecting a crash or even a sizeable correction while the Fed is engaged in quantitative easing.
Since the current round of QE is open ended, that raises the probability that the QE III fueled rally may surpass in length the previous rallies.
The weekly chart below illustrates the point:
There's also the question of whether the belief that one can print his way to prosperity may also be some form of insanity. But we'll discuss that topic at a later date.
For the time being, the trend remains up for all the major indices, in all time frames.