Much of the current economic news has centered around the situation in Europe. The German DAX has been a good leading indicator for SPX. The higher low for the DAX in July 2010 was a solid indicator of a bullish move to commence.
The same was true in early October 2011. The higher low on the DAX suggested a bounce. Why just a short lived bounce?
Unlike 2010, The performance of the DAX is still much weaker than SPX. The large gap in DAX vs SPX is quite clear, and should be taken as a serious warning.