Historically September is the most bearish month of the year. However, the big correction still has not started yet. I’ve bought some PUT option on SPY (S&P500 Index ETF) few weeks ago base on the assumption that Sept will have a big correction. I think I’ve made a mistake buying options without looking at the chart & confirming with the technical indicators.
Last Friday S&P500 showed some weakness and the stock price was testing its 20D MA. Let’s see this week whether S&P500 can stay above the 20D MA and 1009 (this is a very strong resistance base on 61.8% Fibonacci retracement level from Nov 2008 high).