It’s getting close to about six weeks since the start of the correction. SPY went from about 285 in the final days of January 2018 to a low of about 256 on February 9 or 10.
There was a rebound to about 275 around February 25 or so and then another pull back to 265 around the first of March.
Another rally to 277 and now we sit about 275. Let’s take a look.
Here’s what I see, this looks like a couple of higher highs, after the pull back of course, and a couple of higher lows. This assumes this low holds at 275.
Providing this happens I think we ultimately get back to the rally and a new high, maybe before the end of this month or the next.
But until then I am banking a bit on us trading within a range from 275 to around 283.
Since I am net long the SPY I am selling call credit spreads every time we have an intra-day rally. At the end of the day and selling occurs these spreads fall in value.
Should we have more of a pull back, I will sell corresponding put credit spreads expiring on the same date as the call credit spreads and thus create iron condors for that date.
Stocks can go up or go down or they can do the unthinkable. They can go sideways.