I rarely get drawn into technicals, but I thought with the S&P 500 crossing back below its 50 day moving average, after having briefly risen above its 200 day moving average, that the chart looked very similar to April/May 2008: this was when the market crossed above its 50 day and almost touched its 200 day moving average, only for the market to move lower during the summer and collapse in the Fall.
That said, I do not think you need technicals to realise that the market is exposed to very severe risks, risks which are increasing in intensity daily.
Also, something which I think may be relevant: the average investor is getting extremely unnerved by the market gyrations and the traumatic events in Europe. It would not take much for more investors to pull the plug and head for the hills.
Why do I think this? I have spoken to a number of individuals, who during the 2008/2009 crisis held their resolve and doubted (robustly I might add) many of my own concerns, who are now on the verge of pulling out and are expressing significant concern.
Things have changed and investor perceptions are much more fragile and weary. I am not saying that people should pull out, but I think this may be what is about to happen. We have reached a key psychological moment in the markets. Things need to get better quickly, otherwise…..