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S&P 500 Demolishes Any Chance of Recovery

Short
SP:SPX   S&P 500 Index
Aloha, trader! Welcome back to another S&P update.

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 bullish 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 bearish 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, MACD for the index is strongly indicative of more bearish 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!

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