Too flat for too long
SPY is likely in a wyckoff distribution phase right now. With RSI extended and the chart flatlining just like in 3 previous relative tops I expect this summer to see a 10-15% correction. Sadly, thanks to the volatile nature of these distributions I don't see puts as attractive as I wish they were. Commodities are rallying hard and so diversifying into that asset class carries the risk of a momentum reversal. Crypto recently underwent a sharp sell off and some has recovered. It's possible to park some cash into crypto for the near term as a hedging vehicle. Otherwise, taking some cash off the table might be prudent while waiting for a substantial dip to buy or a clear breakout from this consolidation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.