Enterprising Investor Forum

Bull or Bear Rally? Tuesday, March 24, 2009

After another 7.1% gain in the S&P yesterday, it looks like the markets may be ready for a little pause. But the big question is if we have indeed reached the bottom or if this is just a bear market rally?

Even though the market actually broke above its 50-day moving average, we are still struggling to understand all this optimism.. we may be wrong but we can’t help the feeling that this is just a speculative push to the 850 area and that we will then have to wake up and smell the coffee, probably whilst looking at an S&P back below the 600 level.

There are too many unanswered questions on the current situation and on the way forwards for the bulls to solidly take control here and if they do, we feel that, it would be sad proof that we haven’t learned anything from these past years….