SPX Weekly: Not Impressed

The SPX has been rising week after week in a bear market rally, but if you look at the 2 year weekly chart with the fibonacci levels you can see that it's still in the bottom 25% of the move that started in October of 2007.

A closer look shows that this move so far has been nothing more then a retrace of the brutal 4 week fall the market had in February and it took 2 months to do it.

While this move has helped to fuel the media that the market is recovering, the chart paints a pictures that's fair from showing any type of recover. Recover for me will be once the 20 MA on the weekly is pointing up and supporting. The 20MA is flat now which will likely create some choppy action the next few months and from there we'll just have to see where that 20MA decides to point our whether we get a long period of chop in this area.

SPX Weekly Chart: