Bulltrap Nearing Completion - 4 Ideas on the Breakdown
Updated
We're finally nearing the completion of my bulltrap forecasts, and unsurprisingly, the market has chosen to draw it out as long as possible to the intersection of the previous lower trendline (dashed line) and the upper bearish trendline. The market laid out a nice bear trap by breaking below the previous lower trend line early, before opting to grind and re-test it multiple times once it turned into overhead resistance. I believe we're finally seeing the reversal downwards, though the bulls have some important support levels at 280 and 278 which could result in a bounce or sideways grind before finally breaking down. Bulls will look to defend this new lower trendline, while bears will look to break it down as soon as possible to open the door to much more downside movement.
Note
Decisive breakdown below the trend line, keep a close eye on futures tonight.
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