SPX Monthly Chart with 12 MA Cross -- Secular Bear Market

The EOM provides another month-end print. The secular bulls needed an SPX 1281 print today to undo the secular bear market currently in place, but, despite the strong last day rally, it did not. Thus, markets remain in a Secular Bear Market.

A secular bull market was signaled when the bombs started dropping for the Iraq War in March 2003. The secular bear was locked in as of October 2007 as markets turned down due to the negative divergence. In march 2009, after the waterfall slide note how there was no positive divergence to bounce the index, the index was artificially bounced by QE1. Thus, there is more than likely unfinished business at that 2009 low. The markets were then launched into a secular bull that started to falter in summer of 2010, but Chairman Bernanke stepped in to save the day with QE2 which popped the markets into the trend change this year.

At the spring 2011 top this year, the MACD histogram, stochastics and money flow were all negatively diverged spanking price down but note how the RSI and MACD line wanted a little more price buoyancy--which we are now receiving. The secular bear market has been in place for four prints now, August thru November. Watch the 12-month MA at 1281 like a hawk moving forward. Price is now only 34 points away. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.