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In focus: Bears give it another try

By Lawrence G. McMillan

The Standard & Poor’s 500 Index fell to new relative lows this week, finally closing below the 1330 level and trading down to 1318 — which was just about the level of the longer-term bull market trend line, connecting the August 2010 and March 2011 lows. That “touch” of the longer-term trend line, plus some overbought conditions, combined to produce a sharp rally today.

But, the overall picture is a more bearish one, since there is a downtrend now in force on the S&P 500 SPX +0.88%   chart.

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