Today we are applying a Bear Put on the ASX/S&P 200 Index (XJO) which has broken the 5-month uptrend line today.
The XJO is currently trading at 6283
The XJO has been trading in an uptrend since late December, but recently it bounced off the 10-year high resistance level at approximately 6380 index points. The strong bearish move today helps confirm that XJO should continue back towards the next support level, just below 6200 index points.
A Bear Put will profit both from bearish and sidewards movement, so it will profit if the XJO heads back to support, but also if it does it slowly.