redback report, week ending 19 october, 2012, page-11

Hmm interesting read, wonder is this is a pullback, potential correction or the birth of a new cyclical bear market?

Given the S&P500 is up over 115% since Mar09, it was getting close to the 12 year high of 1527, Fed's QE'3's impact was a two day rally, the current cyclical bull has been going for approx 43 months compared to the historical average of around 35 months, and lastly valuations (close to 20x) are still high maybe it's time for a new cyclical bear market?

These cyclical cycles tend to see the market more or less double then halve again and again over the life of a secular bear market.

Only time will tell.

Happy trading all :)