SPY is currently between a support level of 553 and a resistance level of 562. Until there’s a breakout or breakdown, I won’t add any more short shares. This also applies to NVDA and KRE, which I mentioned in last night’s briefing.

Rising wedge breakdown

Above 562, there’s the top of the rising wedge pattern, but I’m not sure if it will still be valid after a three-day breakdown and subsequent recovery. I saw some posts that described that move as a false breakdown, but that’s not the case. False breakdowns don’t typically result in a 10% drop that is recovered in two weeks.

Looking ahead

That’s all for tonight. I recommend reading my posts from last week for more information on my positioning moving forward. I’m not convinced that the worst is over and am still expecting a significant sell-off and recession over the coming months or even years.