In order to have a trend you need a number of data points. If you only have a single data point, you don't have a trend. Now, every trend has to start somewhere and if you have reason to believe a trend is about to start, you can take a chance that the single point is the start, but that is akin to gambling.
If you look at the stock market over time, you can certainly see broad trends. However, during each of those trends there are short periods where the trend is reversed for one or more sessions. So every bull market has short periods of correction and every bear market has short rallies.
Since March we have had a clear upward trend based on expectations that a recovery will be coming. Over the last week there has been either a reversal or a correction, or is this a period where we will tread water until there is better economic data?
I believe that there are enough indications of a recovery that the market will resume its upward movement. I do think that this summer may be one where we have some upward and downward movement because of low volume and therefore somewhat exaggerated movement when it is fairly easy to have more buyers than sellers or vice versa on any given day. Also, it gives the economic data time to mature.
Only time will tell.
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