Sideways Market — with a slightly declining trend…

In case you haven’t noticed, the market has moved off the nice trend line it was on the 2nd half of 2009 into what appears to be a sideways mode.

150 days of SPY, click to enlarge
150 days of SPY, click to enlarge

Similar markets like in 2004, have moved off big trendline bull runs and then transitioned into slightly declining sideways markets. I plan to continue a mostly neutral / bullish trading strategy that really tries to be patient about entry points. With the bull market last year if you went long at a peak your  mistakes were erased with time, but I doubt that will happen this year.

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