>> S&P: Is the Bear Market Back?

Today's 21.5 point in the S&P 500 index has broken a trendline in place since July '09, and raises the important question: is this the much awaited correction, or is this an early sign that the bear market is back?

Lets look at the chart as on 01/21/10:

• The trendline from July 09 has been violated
• The narrow rising wedge seems to be broken as well
• MACD is moving ( What is MACD? )
• Price is sitting on top of a support and the 50 period moving average
• Next support is at 1080
• Caveat: trendlines are subjective :)
  

Caution warranted!

-KaranZ