Yesterday's sideways trading left a doji in SPY and higher trading today will create a bullish Doji Sandwich pattern, marking continuation for our upside trajectory. Lower trading today would signal an Evening Star for yesterday's doji and would likely be followed by a pullback to the 8 ema in correction of the overbought condition. Of course markets can correct by going sideways and that would be just fine. Certainly we are in an up-trend and allowing the 8 ema to catch up would be healthy for that trend.
Basically I am saying that the market will either go up, down or sideways. Okay I am making a bit of a joke there. That's a pretty easy prediction, but I am also saying that in all three cases, my market timer remains green and it would take some significant distribution to change that. I find that to be an unlikely scenario at this stage. Momentum is strong. Remember that Newton's law states that:
|Every object in a state of uniform motion tends to remain in that state of motion unless an external force is applied to it.|
This does apply to financial markets and is the basis for the idea of trend trading. The trend will likely remain the trend unless some other force reverses that trend. Here is the SPY chart.