Well, Fed Chairman Bernanke has proved me wrong by dipping his toe into the dreaded tapering of QE3. In retrospect, I suppose he preferred to take this first step on his own rather than put the onus (and any associated fallout) on the back on his successor.

The stock market’s technical consolidation continues, and in fact anyone who missed last week’s entry point for the widely-anticipated year-end rally is getting another shot at it. The S&P 500 and Dow Jones Industrials both lost round-number support again this week at 1800 and 16,000, after briefly recovering them from last week’s pullback.

As the charts last week indicated might happen, the S&P 500 has fallen four straight days and failed to hold its breakout above 1800 while the Dow Jones Industrials lost 16,000. Only the NASDAQ is still holding on to its breakout above 4000. Although the Basic Materials sector was the leader on Wednesday, the Technology sector was strong, as well, and in fact Tech stocks have been the strongest over the past week and the past month.

As stock traders take a break for Thanksgiving, all the major averages have hit new highs after breaking through psychological resistance levels, including the S&P 500 at 1800, Dow Jones Industrials at 16,000, and NASDAQ at 4000. Tech stocks were the big leaders on Wednesday after a strong earnings report from Hewlett-Packard (HPQ).

“Stocks fall on Fed taper discussion.” That’s the gist of what you heard in the media on Wednesday to account for the market’s late-day pullback. There’s always some sort of attempt to explain daily market action. But the reality is that investors simply must take a periodic breather to regroup and retrench, particularly when making an assault on round-number resistance for a major index.

The U.S. stock market has been reluctant to provide eager bulls with a tasty entry point ahead of the much anticipated year-end rally. Although the major indexes have seen fit to consolidate a bit and work off some of their overbought conditions, bulls have hoped for a something more substantial. But very few holders are selling these days.

Like any superhero or action movie star who relies upon a “trusty sidekick,” Mr. Market stays strong, confident, and bold with the Federal Reserve at his side. Chairman Bernanke (and heir apparent Janet Yellen) firmly believes that the wealth effect provided by rising stock and housing markets is essential for maintaining consumer spending and corporate earnings growth.

As I and most other observers expected, stocks took the go-signal from Congress and burst through all prior resistance levels with barely any hesitation. And why not?

As most everyone expected, Congressional brinksmanship gave way to an eleventh hour agreement that will put the government back in business and raise the debt ceiling. However, it’s only a temporary measure that merely defers another knock-down/drag-out for a few months. The question is, how will investors react after an initial bullish burst of relief?

The intransigence continues in Washington, and it has kept stock market buyers at bay until they get the go signal from Congress. This has left the sellers in control as investor sentiment has temporarily shifted from a buy-the-dip mentality to protect-your-gains and preservation-of-capital.