As chart shows currently we are in the fourth year of the president cycle, the election year, and in the fourth year of the bull cycle (started with the 2009 low). The logic of cycle analysis suggests that applying the presidential year cycle strategy we should wait with investments until mid presidential term - Oct 2014 when market trough is expected.
More about the cycle investment strategy at http://www.CapitalHubs.com
I don't think that we are in the eve of bear market, still. The correction, started before the elections, is to remind the politicians that the time for final budget agreement is ticking. If the gridlock is solved there is a possibility that we could see S&P up to 1550, maybe even higher...