THE BEAR STEARNS BEAR MARKET

[PerfectSage]

The Bear Stearns Bear Market
by Carl Swenlin
March 28, 2008

In many of my recent articles I have been emphasizing that we are now in a bear market, based primarily upon the fact that the S&P 500 Index 50-EMA has crossed down through the 200-EMA. This is a simple and effective way to evaluate the long-term trend of the market. In fact, it is a method that can be applied to any price index, because technical indicators don't know anything fundamental about the price index to which they are applied. Indicators simply interpret price movement.

Stocks and/or indexes don't necessarily trend together, so it is usual to have a few stocks or sector indexes trending in a different direction than a broad market index like the S&P 500. For example, Bear Stearns (BSC) topped out -- began its own private bear market -- in January 2007 at about $159 and generated a long-term sell signal about six months later (see chart below) at about $130. The S&P 500 didn't top out until 10 months later.

http://www.decisionpoint.com/ChartSpotliteFiles/080328_bsc.html



Nobody's gonna save America from Bush's clusterfuck presidency. But Obama's my best bet for a non "word up" President.

http://www.youtube.com/watch?v=1q-k-uN73Gk

In 2005 I had this Korn video pegged as the end of the stock bull market video du jour. Word up. Next 4 year cycle is due 2010 enjoy thr Bush clusterfuck!!!! Economy