Here's an excerpt of what I wrote to give you an idea of my opinion:
The Wall Street Journal is reporting this morning that the reason for the drop was fears that Beijing would be forced to tighten its policies in an attempt to cool the property and consumer prices.
Whatever the reason, it's clear that some major indices around the world seem to be entering bear markets, including Australia and France. This may partly be due to the fact that liquidity inflow has been more restrained in these countries than the US. Indeed, Australia and China have been known to be tightening monetary policy for months now.
Personally, I would need to see the S&P 500 take out February's low before a case could be made for the resumption of the bear market. Until that point, I continue to believe the US stock market is simply mired in a normal cyclical bull market correction. At some point, the secular bear market in the US will resume, however...
Try the September 2009 low.
