This is totally up to you. There are a lot of Mamas who are still doing ALL AP at this age and don't start ST until 4 months or so. There are just many who start at this age or younger and it does turn out with time.
If I were you, I would give it a few weeks and then re-start. If you choose to continue with ST, maybe a pre-winddown in a carrier could help put him "in the zone?" My DD would scream bloody murder when the swaddle came out too, some are just screamers no matter whether they are UT or OT.
Speaking of which, how long is he awake before naps?
Sometimes, leaning right over into the bed and getting very close would help DD while I was doing shh/pat. All of this is just to help you with YOUR decision! Hugs!