New Down Trendline A in Play

New Down Trendline A in Play

SPY is backtesting the downtrend line (A) shown here. I'm short here looking for SPY 108.2. If SPY breaks above trendline A then I expect a period of sideways trading, possibly with SPY reaching as high as 109.35 before dropping again. I'm willing to hold my puts through this period as my confidence grows that SPY will drop to 106.01 within the next few days, possibly even today.

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