I found a recent post by Woodshedder on the behaviour of markets after 200 day highs and 200 day low absolutely fascinating. Well worth a read.
I was interested in this conclusion:
"The market making new 200 day highs is carried by its own momentum. The momentum allows the market to shrug off bad data and investor fear and uncertainty."
It got me thinking...could this provide some sort of long term trend filter?
It seems so.