Key insights
- An analyst anticipates a short-term SPY rally to 740, followed by a 15-20% correction, potentially bottoming at 590-600. This bearish outlook is based on prior market behavior and crypto market trends. The analyst plans to trim positions at 740, acknowledging the risk of missing further upside.
Based on prior market behavior and what has already happened to the crypto market in the last quarter, I agree with the hypothesis that SPY could see a slightly higher high followed by a correction bigger than the last one, so 15-20% instead of 10. Just pulling a number out of thin air, not trying to do technical analysis nonsense, I am targeting 740 on SPY to trim a little and then hope that the rest plays out, with a potential bottom of 590 to 600. Not selling a ton since missing out on more upside is the bigger risk, just wanting to see if it plays out. Anyone thinking similarly?