The SPX has now made 4 lower lows. In the May 9, 2008 blog I showed a study that examined 4 lower lows. It broke it out above and below the 200ma. Updated results above the 200ma are below:

Results here are fairly bullish. This is just one of several studies I am following at the moment. The vast majority are suggesting a short-term upside edge. A word of caution that I’ve been discussing in the subscriber letter is that the market has been acting abnormally for the last 5-6 days. This increases risk and traders must decide how they want to handle it.