With the impressive rally off the lows the S&P 500 has now managed to make an important break back above its long-term (12-month) moving average. If you’ve been reading my ongoing updates for the better part of this year, you’ll know that this was the third warning sign I was watching for to help gauge the likelihood of a market peak and onset of a major bear market.

As shown in the red circled regions below (click image to enlarge), the S&P 500 failed to break back above its long-term moving average in 2000 and then again in 2008 in confirmation that we had seen a major peak and were now heading into a protracted decline.

…..read both the bullish and the bearish case HERE