Kissing the Underbelly

The $MID (S&P 400 index) continues its slow grind upward. The interesting thing is that it remains just beneath the massive two year trendline it broke last April 12th. So it's technically still in a bearish state even though, paradoxically, it's going up pretty much every day.

I will remain bearish on this major index until it gets onto the other side of that trendline, which might not happen. Until then, I simply see these higher prices as even more profitable places to short the MDY. For more aggressive traders, there are a large number of equity puts on the MID, although they are not very heavily traded.