By no means has the recent down trend in the S&P ended, the channel is steep and prices continue to hug the expanding lower Bollinger Band. There was something of a promising rally from the Lucifer low at 666, but we remain within the channel. To play the devil's advocate, the SPX is oversold on the daily stochastics and RSI. Also, there has been bullish divergence in the CCI recently. That is, the daily CCI has moved higher as the SPX made new 12 yr lows. If there is a rally, I would expect it to run into very heavy resistance at the November low around 740. I'm currently hoping for a rally to reload shorts. Good luck!
On a side note, the VIX is still hovering around 50 which makes me think that its going to take time for this down cycle to climax with a long term bottom. For those who are interested in the inverse ETFs I strongly encourage you to read this recent article in Minyanville:
Volatility Decay: A New Kind of Risk
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