Short Term & Long Term Chart of S&P 500 Index

Above is 6 month daily chart of S&P 500. As you all know, the bulls came charging back with vengeance and broke the short term down trendline yesterday. For the DOW, it is also the biggest 2-day gain in 5 years. The last few days have not been easy for swing traders with those offsetting wide range bars. Is it all rosy now? Take a look at the longer term chart below.

This is a 5 year monthly chart of S&P 500. Since 2005, the 20MA has proven to be a great support for the monthly chart. Over the longer term, if the 20MA can hold, it looks like the indices will do fine. But the shorter term picture, in my opinion, is still on the edge and easily affected by the credit issues and economic data.