S&P500 has seen an incredible run since March. We're up almost 11% for the year. Volatility has also declined significantly. This enviroment where everyone is bullish is when you should consider a short or hedge your positions. That being said, I do belive S&P500 will continue to make new highs. Therefore, I personally would not consider a short position until price gets closer to 4250. That these levels, I'll look to start opening some short positions as the risk reward ratio becomes more attrsctive. Lastly, I'll like to make a note that markets love false breakouts. We may see a surge above 4300 only to collaspe. This will catch a lot of bulls on the wrong side. This potnential bull trap could be a fantastic short trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.