Intel's Long-Term Overhead Supply: You Can't Stop What's Coming

As is inevitable in an unstoppable bull market, you hear nonstop theories as to why old-fashioned technical analysis "no longer works," as was said at the 2000 and 2007 peaks as well, not to mention in 1987, even in the trough of the 2002/3 and 2008/9 bears. 

One popular declaration is that long-term overhead supply (or likely resistance which the market is likely to encounter when it returns to a difficult level where it peaked many years ago) is laughable because it has been so many years that there can no longer possibly be any more trapped longs who care to sell. 

And, yet, when we look at a multi-year chart of powerhouse semiconductor Intel we can plainly see the 2002 highs acting as formidable long-term overhead supply when price arrived there this past December. 

Sooner or later, these long-term level do matter and at least cause friction. And I suspect that is already happening in many parts of the market, Intel being the poster child. 

The question then becomes when the runaway freight trains and steep multi-year angles of ascent finally crack, namely in the likes of Disney.