Key chart broken

[Valuist]

The S & P 500 200 day moving average

http://finance.yahoo.com/q/ta?s=SPY&t=5y&l=on&z=m&q=l&p=m200&a=&c=

Going back to 2004, its been the top indicator of the market. From 2004 to December 2007, the SPY stayed above the 200 DMA. Bounced off it a number of times. Then in Dec of 2007, the trend was broken as the recession started. The downtrend continued all the way until June of 2009. We've seen the SPY stay above the 200 DMA since then UNTIL today, when it finally broke below. Not a good sign at all.

[Robert Goren]

The S & P 500 200 day moving average

http://finance.yahoo.com/q/ta?s=SPY&t=5y&l=on&z=m&q=l&p=m200&a=&c=

Going back to 2004, its been the top indicator of the market. From 2004 to December 2007, the SPY stayed above the 200 DMA. Bounced off it a number of times. Then in Dec of 2007, the trend was broken as the recession started. The downtrend continued all the way until June of 2009. We've seen the SPY stay above the 200 DMA since then UNTIL today, when it finally broke below. Not a good sign at all. You need to back further than 2004. At least 50 years. There literally thousands of things that one predicted the last bear market, if you only go back to 2004.

[Valuist]

I used 2004 since one really can't see much more beyond that from that chart. But its amazing how the support level holds in bull markets, or how tough the resistance is in bear markets. The markets have been so "one way" the past few years that one better not get in front of the train, no matter which way its going, and its heading down now.