Maybe the recent move higher in the stock market was a bear market bounce, or maybe it’s the beginning of a new bull market. Investors will know soon because the SPDR S&P 500 ETF Trust ETF (NYSE:SPY) just broke its recent uptrend line.
When a market is rallying, the bulls are in control. The breaking, or crossing, of an uptrend line could be an early signal the bears are about to take over.
And as you can see on the chart, SPY broke its recent uptrend line.
SPY has also dropped to an important support level. There’s a chance the SPY bounces back and continues to trend higher into a new bull market.
If the support doesn’t hold and SPY falls below it, there’s a good chance a new downtrend forms.
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