$SPX Risk Remains

We poked through the green channel, and since this advance is probably too big for the “nest” possibility discussed earlier, if this is just another short squeeze before we head to new lows, we can remove one degree from the nest and count the whole thing as a single “2” (in the blue degree):

SPX

It remains imperative that we—at a minimum—take out the high at green 2. I have trimmed some calls and added a few more puts so that I have a bearish bias on my de-facto strangle. It remains possible that a major low is in, but I’d like to see more upside before I am sure about that.


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