Over the weekend I recommended looking into shorting the S&P 500 index , as it looks on the brink of a crash. Today, we can already see this breakdown taking place, as the index dropped nearly 11 points today, producing fair returns through SPXS (triple leveraged reverse index for the S&P 500 index ). However, we must not assume that this drop reflects the crash just yet.
The chart shows that the index is going in coming days, but we must remember similar pullbacks like the one today may happen all the time. Additionally, we can notice that buyers pushed price back up after the initial sharp drop . This could indicated possible action in the near future. Despite these arguments, however, I still hold that the index will eventually drop to around the $2500 level before bouncing on the support, but may possibly rise back up to around $2850 before really crashing.
For the time being, I am going to continue to short the index by buying shares in SPXS . Thanks for reading, leave a like if you agree!