Trying to trade or game this market? Be careful, you can get your head ripped off. That being said, I believe the downtrend has now resumed and that the market is currently a downtrending market. 

I expect we'll revisit sub-1,000 on the S&P again -- more likely even sub-900 -- before the federales start fueling up the helicopters for another money drop. I'd buy the market on a 200-point S&P drop Reasons why I remain negative on the market:

1) The market rallied back to the 200-day (Moving Average) MA and now looks like it's failing. The 200-day MA is flattening out and possibly turning down. This is a typical snapback rally on a market that has just flopped into a negative downtrend. Same thing happened late 2007/early 2008.

2) Steve Leisman on CNBC says "things look pretty good."

3) I believe the Death Cross is still in play. Regardless of all the quants who have shown the death cross means nothing, I still think it means something. Because it represents a psychological picture of the market. The psychology has flipped back to negative.

4) Earnings. The talking heads on CNBC keep talking about how earnings are great and the market should respond. The only problem? Meaningful tops are often coincident with peak earnings. You actually want to buy stocks when earnings are troughing. See: 2000, 2008 (earnings peaked in these years and you actually wanted to buy in 2002, 2009). Take a look at the chart below. Does it look like a very good idea to buy stocks when earnings are real high? The people who keep telling you to buy stocks because earnings are great are stupid. Sorry folks, but the correlation between the stock market and earnings does not exist.

Source: Felder & Company

5) I'm just being a downer. Sorry. I don't want to be this way. But I don't want to be a sucker either.

The chart still doesn't look so hot either. I still think we're in the "Don't Get Fooled Again" market. But have a nice day, yeah?

Photo: Scott Raynovich