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At this point of time I would still be a bit cautioned about buying the dips. However, all the indications from the S&P 500 $SPY and NASDAQ $QQQ chart it looks rather constructive.

1. At point A we had a failed breakdown of 131.20 level which was clear level of support.  Failed breakdowns lead to big snap backs.

2. At point B, we can see that market gapped down on June 27th and June 28th and on both days the bulls took control and bought it right back up.

3. At point C, the utmost important resistance of 136 was breached rather convicingly on high volume on June 29th. Now, some traders may argue that on July 2nd and July 3rd the follow thru days was on lighter volume. But they shouldn’t forget that we had July 4th coming up, hence trading a few days before is usually light.

for $SPY we still have 138.40 resistance coming up. If your looking to intitiate long positions, I would recommend you to wait for either a pullback to 134 which is the gapfill or maybe look for a consolidation under 138.40. At this point of time, markets look a bit extended and a rest or a pullback should be considered as an opportunity to get in long.

At these levels on $SPY and $QQQ I favor the bullscamp, $SPY below 131.20  I will have to revaluate. But as a trader, for intraday trading I am willing to switch to bear camp on a dime.

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