There was a relief rally in the equities market today. The S&P500 $SPX for example gained 2.15% from the 10/15 close to the 10/16 close. SPX Daily Chart(click to enlarge)Dead Cat Bounce or Part of a Shift to Sideways Consolidation?- Are we convinced that the bear market is over? That the correction is done?- It does seem like the overall bullish trend is still intact since price was able to hold above the 200-day simple moving average (SMA), despite a brief break. - However, I am not so sure that the rally we are already back on the bullish continuation swing. - I think there will be more sideways action first if not even more correction before the market turns back towards the bullish continuation scenario.- With this consideration, I would monitor for resistance if price climbs up to the $2870 support/resistance pivot. - I would also monitor the RSI and anticipate selling when it approaches 60. - Even though I think the S&P500 and the general market will consolidate sideways before heading higher, I am preparing dry powder for lower lows in case the market continues the bearish correction, instead of shifting to sideways consolidation.- I will have a small, but NOT insignificant amount of cash to scoop up a dip to the $2560-$2600 area.- For the SPDR S&P 500 ETF $SPY, it would be in the $256-$260 area. SPY Daily Chart(click to enlarge)