Is The Rally Finally Over?

When markets are rallying, the bulls are in control. When markets are heading lower, it’s the bears who are in charge. The break of a correctly drawn uptrend line shows the leadership may be about to change from the bulls to the bears.

The SPDR S&P 500 ETF Trust SPY has broken its uptrend. This means the recent rally may be over.

But it doesn’t necessarily mean the market will head lower.

It could just mean the market will enter a period of sideways trading or consolidation. Considering how long and how large the recent rally has been, this should be expected. It could even set the stage for another move higher.