Current state of the markets...
The S&P 500 as well as the majority of other indices have seen a huge amount of selling in the recent weeks. While this has been expected, we are at a critical point in this market to determine if this is only a correction or if it is the start of a bear market. The S&P 500 chart above shows that recent price action is about to reach a major support level. Should this be only a market correction, we should touch this support area, consolidate and then move higher. If we breach this level, we should see further weakness in the financial markets and sector rotation into "safe havens" will only increase.

As ICI.org research indicates, $2.063 Trillion have been put on the sidelines on May 31st, $19 billion more than May 10th. As we move towards uncertain market conditions, it only makes sense that people start to move their money to "safe havens". If the technicals hold up, more short covering as well as money being put to work will be injected into the market. This will lead to a rally from this low, but it would require an additional test of breaking the low on April 17th.  ¶ 11:00:00 AM