This index rose from 2003 to mid-2004. Then it sold off, but rallied again into a trading range for 2005 - 2006. After rallying through resistance in late 2006, the index rose to new highs in 2007, but has since sold-off to 2005 levels.
Since last summer, the index has shows a clear lower low and lower high pattern, indicating the index is in bear market territory.
On the 6 months chart, notice the following about the SMAs:
-- Prices are below the 200 day SMA, indicating the index is in a bear market.
-- The 200 and 50 day SMA are both heading lower.
-- The 10 and 20 day SMA just turned lower as well.
-- Prices are below all the SMAs.
