SPY (S&P 500 ETF) offers an objective short entry here around the 273.39 resistance level & will be added as an Active Short Trade.
SPY 60m April 7th
The price targets for this trade are T1 at 263.25, T2 at 256.53, & T3 at 245.37 with potential for additional targets, depending on how the charts develop going forward. As SPY is currently trading at the maximum bounce target that I first provided about 3-weeks ago when the market was bottoming with strong bullish divergences on the 30-minute & 60-minute time frames while deeply oversold, over-shorted, with extremely high P/C ratios & bearish sentiment, I’m starting with an unusually tight suggested stop of a daily close above 279.09 although SPY has a very significant resistance level a little higher around 288.00 that I might revise to as the maximum stop. I’d like to analyze the charts a bit more & see how the market trades today before making any revisions to the parameters on this trade.
The suggested beta-adjusted position size for this trade is 1.0. Alternative inverse ETF proxies for this trade are SH (-1x), SDS (-2x), and SPXS (-3x) although one should factor in any leverage when determining their position size (e.g.- SDS would call for a 0.5 beta-adjusted position size due to the 200% leverage). Make sure to take advantage of the RSOTC position size calculators which can be accessed by clicking on the calculator icon on the top menu of the site or by clicking here.