The analysis suggests that if SPY reaches a price around $488.20
The analysis suggests that if SPY reaches a price level of around $488.20, it might not sustain this upward movement and could fall back to around $465. This kind of scenario is known as a "bull trap" because it traps buyers into thinking the market is in an uptrend, prompting them to buy, only for the price to fall subsequently, resulting in losses for those who bought in during the trap.
Bull traps typically occur after a significant decline in price and a subsequent recovery that fails to continue upward. They are often identified by a price that breaks above a resistance level but does not maintain momentum and falls back below it.
In this specific chart, the bull trap is suggested by the price action approaching the upper boundary of a trading range or technical resistance level.
Volume analyst
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.