“We’re going to see a series of starts and stops throughout 2010. The market clearly doesn’t have a direction right now because of all the political and macro-economic uncertainty,” Mahn says. Because the S&P 500 has not yet broken through its 200-day moving average with more than a 5% margin of error, Mahn says it’s not yet clear that we’re in correction mode; he’s waiting for the index to drop below 1048. Mahn says the underlying economic picture is “bleak,” but the market doesn’t have a clear short-term direction. He’s watching the headlines, rather than technical indicators, for clues.

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