SPX Bull Trap fractals.
Updated
Things loog grizzly right now for the whole world and broader markets but there comes a time where the sell off gets over done, the shorts get squeezed and people think that it is over. Rising support becoming resistance is a key sign that the trend is changing and we have a whole lot of people contemplating going short right now and FOMO'ing in to recoup some losses. I, on the other hand, am closing my position in a short ETF and looking to short from higher up.
I expect that the price action will reverse to the weekly baseline or relatively close and that will also be near the trend line to act as resistance. This will cause a cascade where the price action has a major deciion point. Either it get support on the blue line one more time and the economy lives to see another day and another uptrend, or it slips the last blue trend line in dramatic fashion then gets hammered down.
Considering you could use this post as a reason to go long into the bull trap with all adrenaline and leverage, or you could use it to go or keep your short I am not taking it long or short.
Coming shortly is another post that will show why I think the most likely scenario is SPX into the dirt. Please review some of the linked ideas for a macro picture as well.
- The first two blue lines show a long term trend line of years suddenly faily as support and then turning to resistance as price action gets hammered down.
- The red trend lines and hammers shows a relatively shorter fractal of the concepts at play but clearly the red fractal sets up the blue fractal.
- The 3rd Standard Deviation Bollinger bans contain over 99% of price action. When you impulse into the bollinger band limit it is a good sign you can take profits. If price action does a slow burn into the bollinger band then in my experience you have a lot further you could go down. It depends on the particulars.
I expect that the price action will reverse to the weekly baseline or relatively close and that will also be near the trend line to act as resistance. This will cause a cascade where the price action has a major deciion point. Either it get support on the blue line one more time and the economy lives to see another day and another uptrend, or it slips the last blue trend line in dramatic fashion then gets hammered down.
Considering you could use this post as a reason to go long into the bull trap with all adrenaline and leverage, or you could use it to go or keep your short I am not taking it long or short.
Coming shortly is another post that will show why I think the most likely scenario is SPX into the dirt. Please review some of the linked ideas for a macro picture as well.
Note
LMAO hit Play.
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