Correction or Bear Market?

See, it is too early to say so, but please remember that we have been looking for weakness since mid april, when the nifty broke down below 5270. Instead of worrying about a correction or a bear market, we need to understand that we should not buy.This is what will protect us from any kind of decline. We have also suggested many times that investors should switch from mid cap / speculative stocks to blue chips.

The Nifty continues to follow a pattern of lower highs, lower lows. This pattern will get broken if he Nifty were to close above 5206. These levels will change over time. There are three qualifiers for defining a bear market:

1. Pattern of lower highs, lower lows
2. Trading below the 200 day moving average
3. Breaking below the previous intermediate low

The previous intermediate low was at 4675 made in Feb 2010. This has not been broken yet, although the first two points have been met.

So, this is still a correction. What do readers say?

Should you buy now?