Will the Stock Market Rally Continue or Pull Back?

 

As shown on the above charts, powerful rallies about the 200-day moving average signal a major change in market trend in 1975 and 2003. Currently, the Standard & Poor?EUR??,,????'???s 500, as well as most major indices, are below their 200-day moving averages (a negative signal). ?EUR??,,????'??? Courtesy of Winans International

With 2009?EUR??,,????'???s volatile first quarter ending on a high note, the question on everybody?EUR??,,????'???s mind is whether the storm is finally over, or are we in the eye of a financial hurricane with the back end of the storm yet to come?

While there has been much fanfare in the media about how unique this bear market is, similarly high levels of volatility were present at the end of both the above mentioned bear markets. In fact, the 2000-02 bear market had two rallies of approximately 24% followed by several fast moving declines of nearly 20% over eight months. ?EUR??,,????'??? Courtesy of Winans International