THE S&P 500 SPDRs (SPY) looks pretty ugly from a technical perspective.  The SPY has a bearish confirmed down-trendline, which is an overall bearish sell signal.

And the 50-day simple moving average (SMA) could drop below the 200-day (SMA), which is a negative indicator called a “Death Cross”.  

A “Death Cross” or “Dark Cross” event signals an asset will head lower.  It’s when a short-term moving average crosses below a longer-term average.  See the chart above, if the lines cross, the “Death Cross” will trigger, which may lead to a selloff for the entire global stock market!

I recently recommended the readers of my Options Power Trader financial newsletter to take a put option position that can make substantial gains as the broad stock market drops.  These put options can also serve as “insurance” to hedge against losses in your long positions during a stock market correction or major pullback.

Best Wishes,

Ted Peroulakis, MBA
Financial Analyst

P.S.  Are you looking for stock option recommendations with 100% or more profit potential?

I’ve recently sent the readers of my Options Power Trader lots of big winners, including:

+100% GAINS on Chesapeake Energy calls in 8 days
+117% GAINS on Noble Corp calls in 10 days
+112% GAINS on Gold ETF calls in 14 days
+100% GAINS on Mylan calls in 7 days
+140% GAINS on Euro puts in 9 days
+100% GAINS on Financial Bull 3X ETF calls in 7 days
+145% GAINS on Amylin Pharmaceuticals calls in 4 days
+194% GAINS on Noble calls in 35 days
+100% GAINS on Freeport-McMoRan calls in 7 days

Make sure to get on the list to receive my next option recommendation with explosive profit potential.  Click here to learn more