The SPY dropped about 6 points in the night session between Tuesday and Wednesday. It V bottomed at 670 and hit 680+ in the day session Wednesday. That V bottom is not surprising.

The stock market is going to make it look like its the same old story of V bottoms. In my opinion though, this time its not going to end up with more new highs. Rather I expect a failure and lower prices ahead in the stock market. I am short via spreads in the S&P 500. Both credit and debit spreads look attractive from a pricing point of view. So if it is going down, the options pricing is cooperative.

Thanks,

Joe

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