This is fairly bearish.  The 200-day MA is breaking down and the rallies keep failing.  Note that the S&P 500, as show here with the SPDRs) dropped below the 200-day on panic day May 6.  The real break through was May 20.  You can see by the chart that the market has tried to rally and stay above the 200-day MA about 4 times.  The most recent failure was on July 15^th. 

Note on the 13, 14 and 15^th it tried to hang onto the 200-day but could not break through.  On 7-16-2010 it gave up.  Many traders take their vacations in the summer but if the S&P 500 cannot get back above the 200-day there may be more on the downside. 

There is something else about the 200-day that we will tell members about. 

We remain cautiously bearish.  

Nice Triple Test On British Petroleum   July 18, 2010

Investors Alliance members will know what we mean about Triple Test or see prior articles on the web site behind the password area.  A 46% gain in about 22 days.  Did TT know they would get the leak fixed?   TT picked the bottom on BP just like it did on Ford back in 2009.  Triple Test was developed by Frank Lardino. 

Coming Soon: Frank Lardino’s new – Mega Triple Test using 2 and 3X ETFs.