SPY is still in a very solid uptrend which started after 2008 meltdown. This chart shows the trendlines from 2011 onwards. Recent bad news around Greece, Commodities meltdown, China, etc. have not really made a dent in the trendline. A sideways movement since start of the year may be a good way of consolidating before continuing in the channel. Another option is to create a lesser slope channel (The uptrend from 2009 to 2011 was a slower climb). It would be healthy and more sustainable over longer term. The key to figure out change of slope is to continue monitoring higher lows. Any sign of sustained lower lows combined with break in this channel is dangerous.
What do you recommend doing? If you are long from here, where would you sell? What do you need to see to change your mind?
Raman_Bindlish
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I will wait for the trend line to be tested and add positions if it keeps in the channel and does not break on a daily closing basis.
Also, there is an opportunity to right put spreads and make money on down days.
Disclaimer - I am long SPY and trade in option spreads.