Wall Street watchers are coming to blows over whether the market has bottomed or if this is a bear market bounce with new lows still ahead.

Peter Cardillo, chief market economist at Avalon Partners believes the worst lows are behind us. However, Lincoln Anderson, CIO of LPL Financial in Boston says the exactly opposite. "We don't know if the bottom is in," he tells us.

“This kind of volatility in the market tells you that there are huge disagreements among investors about what the fundamentals are, and about what the outlook is," adds Ethan Harris, chief U.S. economist at Barclays.

Seems like a good time to turn to the charts. For further analysis we turn to esteemed market technician John Roque of Natixis Bleichroeder.

(.SPX) Loading...       (%)

According to Roque, patterns in the S&P suggest that recent gains have been a bear market rally.

“We took the S&P 500 and divided it by its 200-day moving average,” Roque explains. "Quite recently we were more than 30% below that level which is the worst reading over the last 50 years.”

And he tells us, “7 out of 7 times the market was higher one month later by 13%. But 5 of those 7 times there was a successful retest.”

In other words he thinks there’s a good chance the market will retest the lows on the S&P.

What's the bottom line? “My suggestion is to sell rallies and not look to chase anything. I think volatility will stay high,” he says.

To see John Roque's entire technical analysis please watch the video.

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