Million

Resistance

<ul class="list-ic vertical"> 
 <li> <span>1</span> <a>Michael Burry took bearish positions on S&amp;P 500 ETF SPY stock and Invesco QQQ stock.</a> </li> 
 <li> <span>2</span> <a>Big Short Investor Michael Burry, builds short positions by Put Options.</a> </li> 
 <li> <span>3</span> <a>S&amp;P 500 and Nasdaq 100 both are trading above the 200-day EMA.</a> </li> 
</ul> 
<p>Michael Burry, famous for his Big Short in 2008 Crash is now in the spotlight for his other bearish bet. He shorted SPY stock and QQQ stock by Put options that track S&amp;P 500 and Nasdaq 100.&nbsp;</p> 
<p>Michael Burry’s fund, Scion Asset Management bought $866 Million in Put option against the fund that tracks S&amp;P 500 index. Also, $739 Million in Put options against another fund that tracks Nasdaq 100 index.&nbsp;</p> 
<p>According to SEC filings released on Monday, Burry is using 90% of his portfolio to bet the short positions. S&amp;P 500 index performed well in the past few months and is up by 16% on a YTD basis.&nbsp;</p> 
<p>At the beginning of June, <a href="https://www.thecoinrepublic.com/2023/07/28/sp-500-index-price-forecast-aug-2023-is-spx-heading-down/" rel="noopener noreferrer nofollow">SPX broke</a> out of the $4200 hurdle which triggered the positive sentiment.&nbsp;</p> 
<p>Later, SPX price began to rise by forming higher high candles and rallied 10% (approx.) in the period of 2 months. However, the momentum halted near $4600 short-term retracement is also visible.&nbsp;</p> 
<p>S&amp;P 500 (SPX) price closed the previous session at $4404.32 with an intraday decline of -0.76%. In the current month, the SPX fell 4.02%.&nbsp; Moreover, the news of Michael Burry’s short is also negatively impacting the market sentiment.&nbsp;</p> 
<h2 class="wp-block-heading" id="strong-will-michael-burry-big-short-investor-win-the-bet-strong"><strong>Will Michael Burry Big Short Investor Win the Bet?</strong></h2> 
<div class="wp-block-image"> 
 <figure class="aligncenter"> 
  <img decoding="async" src="https://lh3.googleusercontent.com/bXbVWvEJZHArc5o2Ks2EP3CCQTrYLkSay6ZWqG4UyPukKrcuztJiVrXf8wL3X545GTYfPfS3FabU2CqR3_ux0Hrfp-fR8XD9SI27MzfYyedBVQr6auzeR5YeASGU64G-T6bsnL1FyI-qlyKnZDP3Ew" alt="Michael Burry Bear vs S&amp;P 500 Bull; Will it be a Next Big Short?"> 
  <figcaption class="wp-element-caption">
    S&amp;P 500 SPX daily chart by <a href="https://www.tradingview.com/x/5nJuyON5/" rel="noopener noreferrer nofollow">TradingView</a> 
  </figcaption> 
 </figure> 
</div> 
<p>Michael Burry is one of the top investors in the US Market. However, his past few bets which he predicted in 2013 and 2020 did not work well.&nbsp;</p> 
<p>So, we must respect the views of Michael Burry’s 2023 market crash prediction. But, we also have to do our own analysis before building any positions.&nbsp;</p> 
<p>SPX price and Nasdaq 100, both are trading above the 200-day EMA. Therefore, the long-term trend is still bullish and short-term correction might get bought from the support. On the lower side, $4300 and $4200 in SPX will act as strong support for the bulls.&nbsp;</p> 
<h3 class="wp-block-heading" id="strong-sp-500-spx-index-is-in-uptrend-strong"><strong>S&amp;P 500 (SPX) index is in uptrend</strong></h3>  
<div class="tradingview-widget-container">
  &nbsp;&nbsp; 
 <div id="tradingview_25713"></div> &nbsp;&nbsp; 
 <div class="tradingview-widget-copyright"> <a href="https://www.tradingview.com/" rel="noopener noreferrer nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a> 
 </div> &nbsp;&nbsp; 
 <script type="text/javascript" src="https://s3.tradingview.com/tv.js"></script> &nbsp;&nbsp; 
 <script type="text/javascript">

  new TradingView.widget(

  {

  "width": 950,

  "height": 500,

  "symbol": "AMEX:SPY",

  "interval": "D",

  "timezone": "Etc/UTC",

  "theme": "dark",

  "style": "1",

  "locale": "en",

  "enable_publishing": true,

  "allow_symbol_change": true,

  "studies": [

    "STD;Supertrend"

  ],

  "container_id": "tradingview_25713"

}

  );

  </script> 
</div>  
<p>S&amp;P 500 and Nasdaq 100 both the index are in an uptrend. So, till the SPX price sustains above $4200 the possibility of a bounce back will remain high.&nbsp;</p> 
<p>From the current levels, SPX might decline by 4% to 5% in the coming months. But it will be too early to consider the minor fall as a crash.&nbsp;</p> 
<p>The MACD curve is sloping down and near the zero line indicates mild bearishness. The RSI at 38 denotes weakness and bears seem to be strengthening their grip.&nbsp;</p> 
<h4 class="wp-block-heading"><strong>Conclusion</strong></h4> 
<p>Michael Burry, the Big short investor is now predicting the crash in 2023. He builds short positions in<a href="https://www.thecoinrepublic.com/2023/07/28/sp-500-index-price-forecast-aug-2023-is-spx-heading-down/" target="_blank" rel="noopener noreferrer nofollow"> SPY stock</a> and QQQ stock by Put options. However, the technical analysis suggests, till S&amp;P 500 sustains above $4200 the possibility of a market crash remains low.</p> 
<h5 class="wp-block-heading"><strong>Technical levels</strong></h5> 
<ul> 
 <li>Resistance levels: $4500 and $4600</li> 
 <li>Support levels: $4329 and $4211</li> 
</ul> 
<h5 class="wp-block-heading"><strong>Disclaimer</strong></h5> 
<p>The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.</p>

Michael Burry Bear vs S&P 500 Bull; Will it be a Next Big Short?

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Thecoinrepublic.com

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