Wolfe Gasping, Bulls Grinning
Well, this is exactly what every bear didn’t want to wake up to…
Overnight, markets surged higher after Trump hinted at easing tariffs and gave Powell a thumbs-up. It’s like watching your opponent trip mid-game, then suddenly recover, score a hat trick, and throw you a smug grin.
That line in the sand we’ve been talking about?
5400.
It’s been the invalidation level for weeks – and now it’s being bulldozed like it never mattered.
This isn’t about guessing the news.
It’s about having a clear point where your bias says, “Okay, I’m out.”
The Wolfe was working… until it wasn’t.
And that’s okay.
Because while the bear swing has been fantastic, we’re now seeing what might be the higher low reversal we flagged a few weeks ago - just without the drop to 5000 first.
Frustrating? A little.
Unexpected? Not really.
Tradable? Absolutely.
Let’s look at how this flips our setup for today.
---
SPX Market View - Bull Bias Activated (Finally)
Well, that escalated quickly.
With the overnight futures surge and 5400 now breached, the Wolfe Wave is officially off the board. Our long-standing bear bias has been invalidated — and we flip bullish for the first time in weeks.
This is the power of having a system.
You don’t need to guess. You just need a line in the sand. Ours was 5400. Price crossed it. The bias flips.
Here’s what I’m watching now:
5400 is now the breakout zone – if it holds at the cash open, bulls have full control
Higher low structure playing out across the daily chart
GEX positioning will be key — I’ll be watching for hedging demand shifts to confirm upside stability
This doesn’t mean we go all-in bull mode with blind optimism.
It means we assess new setups in line with the price action, and if they confirm – we act.
Bull’s got the ball (for now).
Let’s see if he fumbles or scores.
GEX Analysis Update
5300 acting as the updated flip point overnight
SPX prices potentially gaping 100+ points assuming the futures hold their gains.
---
Expert Insights: Know Your Invalidation
❌ Clinging to a bias too long
It’s tempting to hold on to the story. “Wolfe’s still in play,” you tell yourself… even after price says otherwise.
✅ Know your invalidation level
5400 was the line. It’s been clear for weeks. Once price punched through it — the plan said, “That’s it. Game over for the bear.”
No ego. No hoping. No rewriting the script mid-trade.
Your system needs boundaries.
Otherwise, it’s not a system — it’s a story.
---
Rumour Has It…
Trump’s tweet this morning: “Tariffs are dumb. Powell’s alright. Markets UP!” Dow gained 200 in 10 seconds.
CNBC now referring to 5400 as “The Enlightenment Zone.”
The Wolfe Wave was last seen howling into the wind and fading into the distance.
(This section is entirely made-up satire. Probably.)
---
Fun Fact - The 5400 Flip
Here’s a kicker for you…
5400 has flipped bias more times than any other round number level in the SPX this year.
It's the psychological equivalent of a market mood swing.
And every time price hits it, traders start reaching for different narratives:
“It’s resistance.”
“Now it’s support.”
“No wait, it’s just a number.”
“Actually, it’s Fibonacci-magnet-retrograde!”
Sometimes it’s just this:
5400 = The Line Where We Flip.
Meme of the Day - “Wolfe’s Out. Bull’s In.”
IMAGES ON MAIN BLOG
Happy trading,
Phil
Less Brain, More Gain
…and may your trades be smoother than a cashmere codpiece
Well, this is exactly what every bear didn’t want to wake up to…
Overnight, markets surged higher after Trump hinted at easing tariffs and gave Powell a thumbs-up. It’s like watching your opponent trip mid-game, then suddenly recover, score a hat trick, and throw you a smug grin.
That line in the sand we’ve been talking about?
5400.
It’s been the invalidation level for weeks – and now it’s being bulldozed like it never mattered.
This isn’t about guessing the news.
It’s about having a clear point where your bias says, “Okay, I’m out.”
The Wolfe was working… until it wasn’t.
And that’s okay.
Because while the bear swing has been fantastic, we’re now seeing what might be the higher low reversal we flagged a few weeks ago - just without the drop to 5000 first.
Frustrating? A little.
Unexpected? Not really.
Tradable? Absolutely.
Let’s look at how this flips our setup for today.
---
SPX Market View - Bull Bias Activated (Finally)
Well, that escalated quickly.
With the overnight futures surge and 5400 now breached, the Wolfe Wave is officially off the board. Our long-standing bear bias has been invalidated — and we flip bullish for the first time in weeks.
This is the power of having a system.
You don’t need to guess. You just need a line in the sand. Ours was 5400. Price crossed it. The bias flips.
Here’s what I’m watching now:
5400 is now the breakout zone – if it holds at the cash open, bulls have full control
Higher low structure playing out across the daily chart
GEX positioning will be key — I’ll be watching for hedging demand shifts to confirm upside stability
This doesn’t mean we go all-in bull mode with blind optimism.
It means we assess new setups in line with the price action, and if they confirm – we act.
Bull’s got the ball (for now).
Let’s see if he fumbles or scores.
GEX Analysis Update
5300 acting as the updated flip point overnight
SPX prices potentially gaping 100+ points assuming the futures hold their gains.
---
Expert Insights: Know Your Invalidation
❌ Clinging to a bias too long
It’s tempting to hold on to the story. “Wolfe’s still in play,” you tell yourself… even after price says otherwise.
✅ Know your invalidation level
5400 was the line. It’s been clear for weeks. Once price punched through it — the plan said, “That’s it. Game over for the bear.”
No ego. No hoping. No rewriting the script mid-trade.
Your system needs boundaries.
Otherwise, it’s not a system — it’s a story.
---
Rumour Has It…
Trump’s tweet this morning: “Tariffs are dumb. Powell’s alright. Markets UP!” Dow gained 200 in 10 seconds.
CNBC now referring to 5400 as “The Enlightenment Zone.”
The Wolfe Wave was last seen howling into the wind and fading into the distance.
(This section is entirely made-up satire. Probably.)
---
Fun Fact - The 5400 Flip
Here’s a kicker for you…
5400 has flipped bias more times than any other round number level in the SPX this year.
It's the psychological equivalent of a market mood swing.
And every time price hits it, traders start reaching for different narratives:
“It’s resistance.”
“Now it’s support.”
“No wait, it’s just a number.”
“Actually, it’s Fibonacci-magnet-retrograde!”
Sometimes it’s just this:
5400 = The Line Where We Flip.
Meme of the Day - “Wolfe’s Out. Bull’s In.”
IMAGES ON MAIN BLOG
Happy trading,
Phil
Less Brain, More Gain
…and may your trades be smoother than a cashmere codpiece
Full-time trader and mentor since 2001
Focusing on short term income swings with SPX options, futures and occasionally stocks.
Focusing on short term income swings with SPX options, futures and occasionally stocks.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Full-time trader and mentor since 2001
Focusing on short term income swings with SPX options, futures and occasionally stocks.
Focusing on short term income swings with SPX options, futures and occasionally stocks.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.