SNP500 ETF (SPY) – This is it! Shorting Time!

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.

Bearish Signals

  • 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).

Leave a Reply