I have been waiting for a right time to short the S&P500 ETF (SPY) and finally I found clear signals to short this ETF by buying PUT Option.
- Evening Star candlestick pattern.
- SPY was unable to break the 200D MA resistance and bounced down.
- 20D MA is coming down very steeply to cross 200D MA.
- MACD shows Bearish Convergence.
- RSI and Stochastic started to reverse and head down.
I am expecting SPY to retrace at least 40% during this correction and my target price is $101.5 (38.2% Fibonacci Retracement Level).