A look at the monthly

Today we came to the end of an ugly month and ugly first half of 2008 so I wanted to take a step back and look at the picture of a long term monthly chart. As we sit now things do not look good.  We finally got a cross of the 8 and 21 EMA and a close below the 50EMA.  In the past when this situation occured it was rare to see the market rally from this point on without at least one more significant drop.  I would continue to be cautious in this market.  I will continue to day trade and keep the swing trade money in other markets or on the sidelines until I can get a better idea of what this market is going to do.