While it remains troubling that this decline thus far has yet to create very many bears or
unnerve the masses, we can take a long term breather from the chart below.
This chart of the S&P 500 and the Commercial (BLUE) and Fund (GREEN) positions clearly
indicates that the bull market is alive and kicking and will remain healthy for quite sometime.
As you can see, the Smart Money which is the blue line are very heavy buyers of equities and until this trend reverses it makes no sense to think the sky is falling.
On the other side of the coin, the Fund Traders as represented by the green line seem to think the long term trend has shifted to down and are shorting strongly. Typically you see this type of fund activity just before a low of significance is reached.
So, while intermediate term the market has yet to put a bottom in and lower prices are in the cards, the prudent investor is hedged during this decline and using the time wisely to find a fresh batch of stocks to purchase after the storm passes.