SPY 1 Month Chart

What goes up…

To be honest, I got taken out when we broke out over $138.50 on the $SPY. Some rolling and cleaning up of the calendar spreads kept me out of big trouble, but the ranges I’ve spoken about over the last two weeks are finished. I’d look now for a 138.50 resistance, if you’re considering short or downside levels.

SPY 1 Month Chart

My comfort level was that $138.50 top and I was as surprised as many at the pop. As you’ve read the stress test “leak”, and Jamie Dimond / Fed soap opera had lots to do with the spike. I’m not completely sidelined but my feeling here is to buy puts, and maybe lots of them or bear spreads for the faint of heart. The $VIX is screaming “watch out”.

Here’s a good article from FT, worth a read for those thinking of jumping in long here.

Good trading.