SPDR S&P 500 ETF
First, it's worth taking an updated look at the SPDR S&P 500 ETF ( SPY) today. SPY is a good proxy for the broad market -- the $130 billion ETF mirrors the S&P's daily ebb and flow, giving investors a one-step way to buy stocks as a group. And lately, both the big index and this ETF have been looking extremely attractive from a technical standpoint.
It doesn't take a whole lot of technical expertise to see where the prevailing trend is in this chart: It's up. More importantly, that uptrend has stayed within a tight channel since all the way back in November. Even when the S&P tested support in mid-April, the index managed to catch a bid at that lower line and bounce higher again. In a word, this rally has been "orderly" -- and it continues to be orderly right now.In a nutshell, this is still a "buy the dips" market. By that, I mean that it's continuing to pay off to buy SPY close to trend line support. That'll change when the uptrend breaks and the 50-day moving average gets violated. Until that happens, keep buying the dips.