Sunday, August 14, 2011

start of a new bear market?

For the past 15+ years, whenever the S&P broke below the monthly 20 sma(yellow line), signaled that we are entering a bear Market. When the price went above the monthly 20 sma , we where back in a bull market. Last week, the price on the S&P 500 went below the monthly 20 sma. We are now back in a Bear market. Sell rallies as long as the S&P stays below 1200 on a monthly close.