SPY - A more conservative short opportunity

Not financial advise. Do your own research. The ideas shared here are the personal opinions of the BitDoctor team. Trade at your risk.

Short and sweet comments here. The stock market has rallied so hard. It's actually pretty remarkable. The government is shut down, China has a showing of weakening economic growth, Big tech companies are preparing investors for lower than expected earnings... I could go on, yet we've had a month of up up up.

Capitulation phase is nearing completion, but what next? Here these words: Watch the reaction at $270!

Swing high at $294 to swing low at $233 gives us a 61.8% retracement at about $270.80 and that usually means (note I said usually) a pretty strong rejection. If we do get rejected (and it'll likely happen early this week), that will be the time to get your shorts in place. It's a gamble right now still until we see this reaction at 270.

Trade safely friends.