If you've been keeping up with our posts, I noted over the weekend that traders should be watching the S&P 500 index , on the brink of a crash. This week, that crash has been playing out, destroying the 2 month rally we've been seeing. Today was a big day for the index, as it needed to beat possible support at around $2755. The bears have won yet again, however, and as we predicted, S&P smashed below. We can expect further price action.
I still estimate the index to drop as low as $2500, but perhaps faster than I had originally imagined for such a large fund. Nevertheless, I will hold my short on the index by longing shares in SPXS . I do not expect any noticeable bounces to occur, for the index is strongly indicative of more action, but we've seen crazier.
We've been right about the initial S&P drop , the crypto breakout and Ethereum rally, will we be correct about about a second drop for S&P?
Thanks for reading, leave a like if you agree!