SPY short term rally

8 août 2015

We've got a hammer holding both the 200ma and the long term bull market trendline, I expect a rally early next week, but I'm not super confident on how long/strong it will be. Personally I'd like to see a new ATH before I believe this bull market is still strong. Personal bias is that the lower trendline breaks in the next month or two. It broke briefly last October for the first time in years but snapped back within a few days, so a close below the line doesn't necessarily mean a big correction, but I'd certainly be short-biased until proven otherwise in such a case.