$SPY – so what happens next?

UPDATE MONDAY 9/12:

SPY October ATM calls…

Following the red…

Friday’s drop in the stock market was the biggest since Friday June 24th.  On Monday June27, there was more downside but then the market bottomed.  Starting June 28th SPY rallied for four consecutive days, paused, and finally continued up into July and August and rallying all the way virtually to Friday.

On Twitter, I called this a possible “deja vu all over again.”  See the chart below.

So here we are again.  I’m short and watching for the turn, but trying to be aware of more to come since the market rhymes more often than it repeats.

(click on the chart for a larger view)

spy_red_2016-08-09_0957

 

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