Here we go again!
The S&P MidCap 400 (MID) made another run at the round 1,000 millennium level, before being rejected coincident with negative comments out of Washington this morning (see 30-minute chart below. It is the fourth run at this area since early-October.
Per the daily chart below the graph immediately below, since first running up to the 1,000 area in early 2011, this morning’s advance to this area is about the 13th attempt to overtake the round-number resistance. The bad news for bulls is that this resistance has proven to be solid. The good news for bulls is the more a resistance level is tested, the resistance is vulnerable to weakening.
On October 23, I wrote a piece about the MID, and we are back above trendline support. though resistance has come into play (again). I think we eventually break out and sustain a move above 1,000, as resistance is likely weakening with each test, and there is plenty of sideline money and short-covering potential to make such a feat achievable.