SPDR S&P 500 (SPY)

[Perseverance71]

On a multi year chart SPY is way overbought. So the logic of it being oversold here and having to bounce doesn't hold up.

Per my posts yesterday I was fully expecting another drop today, but sold my puts because we gapped up and the first hour the chart showed a bullish inside candle on the daily timeframe: I was expecting a gap down, so sold on the notion this could be a bottom. In hindsight the pre market sharp drop should of been the clue. I should have stuck with my original line of thinking. Kinda upset I sold this morning when I was so confident in what I was seeing on the chart this week, I made money but could of made much more.

Yesterday I posted this:
"Getting a clear read from the chart. This move down is not over. Getting calls here is a bad idea. We go down more tomorrow."

After today has finished I'm still getting a clear read and that is that we will keep dropping more, this move still has not bottomed out yet. I see absolutely nothing at all on the chart that indicates we go up from here. Everyday this week we kept dropping more and more and people on here would be like "buying more calls here" "buying next week 200 calls here" "averaging down on 1/22 calls here". Like huh? your averaging down on 2 week out calls while spy is dropping like 3 bucks everyday. seems like people are buying calls just to buy them when there is no reason to. I hope the BTD crowd really gets owned on this move down, because people are becoming so accustomed to the same thing happening, expecting SPY to bounce just because. I look forward to what happens next.