SPX Levels

The SPX did an "about face" today and finished up strong forming a convincing bottoming tail candle today and more importantly there was BUYING going into the close which we haven't seen on quite some time.

What's important to remember is that we are in a BEAR MARKET. The charts point this out very clearly (lower highs, lower lows). We therefore must be very cautious if we are playing the upside since it is HIGHLY LIKELY that any relief really will eventually breakdown and may even search for new lows. IF the SPX can climb above and hold the 1390 level then we can re-evaluate and possibly change our bias to neutral. Until that happens the bias remains BEARISH and we must be on our guard for further moves to the downside. We will not try to predict what the market will do, but we are aware of what trendlines have been breached and importance of what that price action is telling us.

SPX Daily Chart: Note the close today just under the 23.8% Fib level