We can look at SPY ATH from 2018, to its low in December 2018 and show retracement levels respectively. From the lows, we saw a 161% retracement from ATL's and then a correction. Considering where we are now, from ATH's in early 2020, to the lows of March 2020, Spy has retraced yet again, 161%. Obviously the correction was not purely technical based, because of the pandemic, but I do see continuing reasons on why as a whole the market is "overvalued". A healthy correction IMO is imminent, timing it is the hard part, I think we can see a continued SPY run towards 430-435 range, but at that point I would monitor positions closely and have cash ready.
Hedges for me makeup a small percentage of my portfolio, but i will continue to allocate profits from short term swing trades I make towards these hedges. Hedges can be as simple as inverse SPY ETF's, to , to long term options positions. In my opinion, and for my investing strategy, the hedges I am using and will continue to add to these positions as we move higher are the following:
$GLD Call Options 6M-1Y Expirations
$UVXY $40 Call Options with various ranges of expiration dates, as early as July and late as December
$IEF 7-10 Year Treasury Bond Yield Call Options