We're not smart enough to be anticipatory traders -- we are nothing but your classic trend-traders. The current trend is up meaning every day we look to buy break-outs and support longs. But at the same time we look at the following chart and understand what the bears see and the potential for the pull-back. We will trade long for as long as the good times last but at the same time we'll be more careful going forward with buying support.
The 1 year chart looks vulnerable:
The short-term chart shows the market stuck in a channel between SPY 112-109 -- note how the 50 SMA has caught up to the bottom of the channel.