(Disclosure: Bellaire Capital Management is long SPY on behalf of its clients at the time this post was written)
There is potential for more downside in the near term. The recent lows in early June and the 200 day moving average are potential downside targets. Likewise, the Stochastic Oscillator I like to follow (bottom panel of the chart to the left) still hasn't indicated oversold conditions.
Overall, it is probably too early to establish new longs. There is more downside risk in the short run and until the market enters oversold conditions, lower prices look likely.
This information is neither an offer to sell nor a solicitation to buy securities. Forecasts, estimates and opinions stated are my own and the data presented is for educational purposes only. Investments involve risk unless otherwise stated. Past performance is not a guarantee of future results. Be sure to first consult with a qualified tax and/or financial adviser before implementing any strategy discussed.