After a massive rally beginning Oct 2023, we have yet to see a real cool off period as we started moving into the new year.
As per my other trade idea, its obvious to me that the SPY has tried to breach its high without any luck, resulting in a swing high wick that has been already tested twice. It makes me believe the probabilities of the market pulling back to a large support zone before the next massive move up.
In this regard I will hedge my bets through SQQQ and have purchased this ETF yesterday at $13.55. I will be looking to target the previous pivot at approx $16.70 before the market ultimately bounces.
The last move on the SPY ranged from $410 all the way up $480.
I expect a similar style move from $450 - $500+ ?
Only time will tell. For now, I am LONG SQQQ.
Good Luck!
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Some divergences clearly forming. Will add some to my position to hedge the long term portfolio.