We are having trouble in short to medium term time frame, but the long term trend of S&P500 is still intact. Having whipsaws in the market is normal. It does not go up in a straight line. It is normal to have up to 25% drawdowns in a well managed portfolio. If one is not able to handle the drawdowns then it prudent to increase the cash holdings of the portfolio.
Below is the chart of Sensex. See the Gains and losses there based on the long term trend. Trend following works in every market that is truly "free". Check the box showing Pr2Gain, Pr1Gain, PrGain. The current gain is 31.5%. This trend started on Dec, 31 2012.
