I think it´s pretty clear how carefully we have to move in the markets nowadays.
From 2003 to 2008, the SP500 make a easy to follow move of about 808 points.
Now, from 2009 to 2012, the SP500 have make the 808 point, with more clear evidence of a BIG BEAR MARKET can start at any point. We have just to follow the RED TREND LINE that will make us be Bearish . The Brown TL it´s very important to see how close that Baer market will start.
But as everybody knows any market starts with a V Turn, normally they do W or X moves, to "distribute" the paper between the people that less follow the market. So we have to be smart enough to know with kind of move they are trying to make.
I think that at this point it´s easy to see that there is more room down than up, but the market still has not told us yet to put on the bear jacket, but just to keep in mind, where it is.
We see that the MACD it´s still Bullish and clearly above 0, so it´s not time to worry, but just to keep in mind what happend in the market in 07.
“Study the past if you would define the future.” - Confucius
I think we will have more time, until a bear market stats, and maybe will start with a down move towards 1420 level, and again another move up towards 1500.
At that point will see ...... but stay in mind, that ...........
THE GOOD TIMES OF A BULL MARKET HAS GONE !!!!