The SPDR S&P 500 (NYSE:SPY) was surging over 1% higher Tuesday after data released for July showed U.S. job openings decreased below 9 million for the first time since March 2021.

The data indicates that the stubbornly strong labor market has started to cool, giving investors hope that the Federal Reserve’s rate hike campaign is finally succeeding, which could convince the central bank to apply a pause next month.

The SPY’s move higher confirmed the market ETF is trading in an uptrend, with the formation of a higher high. An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate the bulls are in control while the intermittent higher lows indicate consolidation periods.

Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.

Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.

Although the SPY isn’t showing signs that the local top has occurred, eventually the ETF will retrace to form at least another higher low. When that happens, volatility is likely to increase. Traders wishing to trade the potential volatility have multiple options, including the ConvexityShares Daily 1.5x SPIKES Futures ETF (NYSE:SPKY).

For every 1% daily movement in the SPIKES Futures Short-Term Index, the SPKY fund seeks to move 1.5%, meaning that it’s for short-term trades and should not be held for a long period of time.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The SPY Chart: The SPY began trading in an uptrend on Aug. 18, which was confirmed when the ETF retraced to form a higher low at the $435 mark on Aug. 25. On Tuesday, the SPY rose above the most recent high but was't showing any indication a retracement is in the cards for Wednesday.