The pertinent issue right now is whether the market is merely taking a respite from its multi-week correct with this bounce, or is instead on the cusp of a fresh leg higher.

Recall the inverse head and shoulders bottom I pointed out over the past week on the SPY in my intraday post yesterday. As you can see below, we continue to push higher and benignly work off short-term overbought conditions as that pattern holds true.

Taking this market one day at a time with the knowledge that we remain in an overall uptrend is likely the correct strategy, as bulls have indeed made progress this week as bears are retreating.

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