Green shoots notwithstanding...

Not wanting to be a party pooper, I can't help but feel uneasy while publishing the following pictures (obtained from The Business Insider). While this may of course not happen, it would hurt no one to be cautious!

First up, a chart showing that a 30% rise does not mean that the tide has turned: such rallies were common in other long term downtrending markets (Nasdaq 2000, Nikkei 1990s, Dow Great Depression, and current credit crisis). Of course, this argument falls flat if one argues that the current credit crisis is not as severe as the others - but it seems to me that it should definitely be more severe than the tech bust of 2000-01?

Next, a really long term chart of the S&P Composite - note that all bottoms are formed when the index moves substantially below the long term trend line. Will it defy history and stop at the line, or will it go below, as it always has?
Points to ponder! Is cash going to be king?