Up first, it makes sense to take a look at the SPDR S&P 500 ETF ( SPY). After all, SPY is the most investible proxy for the S&P 500 index -- and one of the best way to "buy stocks" in general. A quick look at the chart should tell you everything you need to know about this stock. You don't have to be an expert technical analyst to see that SPY is still in an uptrend. >>5 Hated Earnings Stocks You Should Love Even though the uptrend in stocks got shifted lower with June's correction, the trendline connecting this rally's lows is very well defined right now -- and it's getting tested this week. A breakdown below trendline support would be a very negative signal for stocks in the intermediate term. But as of yet, it hasn't happened. In fact, tests of trendline support have historically been the optimal time to buy shares on the way up. So with SPY testing its price floor again now, it makes sense to buy early signs of a bounce. Buying off a support bounce makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). The bottom line is this: It's still way too early to turn bearish on this market.