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Overall, short positions in the $115,000-$125,000 range remain effective, and new shorts will only be placed in the $79,000-$84,000 range (if the market reaches that area). I am not interested in adding shorts at the $76,000 level; I will only consider increasing short positions in the $79,000-$84,000 range if the market breaks higher and triggers a frenzy of chasing gains.
A significant downward trend is expected to occur in the coming weeks, and this volatility is imminent. I predict the S&P 500 will plummet over 35% in the next two months—compared to the 34% decline during the COVID-19 black swan event, this downturn will be more destructive and trigger a severe chain reaction.