Analysis of the weekly SPY chart leads me to believe the market still has room for a bounce before the next downturn.
Key factors in support of bounce:
1. Bounce at major price support
2. Stochastic oversold crossover developing
3. More room to move until resistance reached.
Note that each time stochastic has reached oversold levels and crossed we've seen a decent sized bounce.
Key factors in support of continued downtrend post bounce:
1. Topping price action pattern
2. Major volume distribution
3. Major resistance
If volume stays low, I will likely unload long positions once resistance is reached and deploy some shorts.