This is by far not a bullish chart. I surmise that there is still a remote chance for the market to turn bullish, but it appears the SPY is way below any commonly used moving average and if the previous lows are broken then we'll probably erase all of the 2006 and 2007 gains very quickly.
Remember the market couldnt find any excuse to fall in 2007, well the opposite is true now, its finding every reason to sell off. Funny how all these reasons were there throughout the entire second half of 2007, yet the market kept running higher and higher.
you have banks contantly increasing the amound they have to writedown, AT&T saying they are shutting off consumers phones and internet services because they can't pay their bills and now AXP saying delinquencies are rising and there is a slowdown in consumer spending;add that to a housing market that has NOT bottomed and consumer debt levels through the roof and thats a recipe for disaster. its common sense. as for TRADING,I can make money in any market but you CANNOT buy and hold. scalping is king in the market and OVERTRADING is certainly not king!
market kept going higher because the consumer continued to spend and employment was holding up. that was why the bulls thought the US would avoid a recession. now both the consumer spending numbers show an obvious retrenchment and eployment is falling. the bulls simply ran out of ammunition unless there are a few idiots left who give the "multinational" arguement about how the weak dollar will keep us out of recession and we will sell more outside the US to make up for our slowdown. that can only help so much.