I can definitely see the SPY coming down to 160 which is right where the 50 day moving average is. Look for the support there and buy on any strength. I think that's a level every trader is looking at. We've touched the 50 day moving avg area 3 times this year and it has been support every time. Once again, every dip is different so don't go all in thinking we'll get a bounce. But even if we break 160 we're still in a long term bull market! We'll be in a bull market even if we broke the support levels at 155, 148, and ultimately 145. As of today, 145 is the catalyst of whether we turn into a bear market or bounce back into a bull trend.
WHY I think we can break the short term bull trend this time is because key leaders are breaking their trends that were kept in tact during the previous pull backs (KO, DIS, WMT, COST, K, IBM, FDX, VZ, JNJ...list goes on)
Watch for the fractures in discount retailers (WMT, COST,DG), telecom (T,VZ), and biotech (JNJ, AMGN). Then in tech and financials (possibly to come, so will look for times to play FAZ for day trades)
Though it may sounds like I'm in bear mode (again), I'm not. Here are my chart set ups from 5.27.2013 (http://next-trade.blogspot.com/2013/06/52713-chart-recapchoppy-as-expected.html), and new set ups for this week.
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