I have been looking at that also ($BPNDX, $VIX), as well as $BPSPX and $BPINDY.They suggest a rally soon. In addition, the SPX is over 200 points below the 200 day SMA. Stockcharts only goes back 3 yrs for non subscribers like me, but in the last 3 years this wide of a gap has only occurred 3 other times, in Jan, Mar and June of this year and on each occasion the ensuing rally took the S&P up 100-150 points.Not saying the bear market bottom is in (I still dont think weve seen capitulation), but a very tradable rally is due soon. This might be useful for those who bet the shorter time moves. I can see a move to SP 1200-1250 before breaking south again.A big question for me is what kind of news might initiate this upswing? Perhaps a rate cut coming soon to a country near you, or even a coordinated world wide rate cut. May ease some fears enough to initiate a short term rally of some significance. If you are the type who trades in and out soon may be an opportunity for some long bets. But we could washout further south first. Its never easy.My choice may be call options on SSO (double S&P).Any comments from the traders out there, or anyone?
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