Based on the fundamentals, we believe the stimulus has already been priced into the markets. Technically, we are seeing lower highs and lower lows. Both the technicals and fundamentals give us reason to be short SPX (only for short term). If you have heard the famous saying, "buy the rumor, sell the news" then you can tell that this may be one of those instances. The stimulus news came after Biden alerted the country that stimulus checks will be sent out. That is when assets started seeing some volatility and we believe the volatility will increase as the week progresses, mainly to the downside. Adding hedges such as puts may be a great decision in times of uncertainty. We believe the uptrend will resume when SPX hits either one of the bottom targets. Trade safe. - HH
HH