The Big Picture now. Part 2.

 











SP500 weekly 2007 - 2011, Saxo Bank
The dark curve is the 34 week MA. The blue curve is the 8 week MA. The first of the five waves down - which have five mini waves - starts when  the 8 MA turns down at the left of the picture. Then it crosses the 34 week MA on downside and a very short time later the 34 MA starts to move down as well. The bear market has started. After the five mini waves have run its course a correction on upside starts. This move on upside have 7 mini waves. But look at the two MA:s. The 34 is falling despite the correction but the 8 is moving up but it turns down just before it reaches the 34. At that very moment the the big fall starts that cuts the SP500 50 percent in 10 months.
After the five waves down has ran its course the three waves on upside starts which peaks in mid 2011. Now look at the 8 MA how it turns down and crosses the 34 MA which also turns down. Then a bottom is created, the 8 MA runs up and is now on its way to eventually cross the 34 MA that is still falling despite a weekly close above. Look again at the correction in May 2008. The same cenario in my opinion.