The current state of the markets appear strikingly similar to that of late '07/early '08, so that is how I am going to play it. Powell and his FED cronies have an interest rate decision this week and as history shows us, the FED seem to always do something at the worst possible time. The market always stays stagnant before the FED meetings/announcements, so we are expecting a BIG move in either direction by the end of this week and into next week. My bet is down. The chart below is from 07/08 and shows how the market may move after the meeting if we are indeed looking at this being an almost identical scenario. If that is the case, I'm expecting SPY to drop to the 385 level over a 7 to 10 day trading period which would still respect the descending channel it is currently in.
Not financial advice
Not financial advice