US 500
Short

Bear Pattern Often Would Spike One More Time

991
The swings of the week so far have created a giant pending butterfly- which may be the most important setup we've seen in SPX for a long long time - certainly the most important during this drop.

A butterfly here in its book context is a bearish pattern, but if you follow my work you'll know I always say harmonics are binary decision levels. If they work, the accurately forecast the reversal zone and then often the implied swing to follow- when they fail, they tend to indicate strong moves in the other direction.

Off a setup like this, a failure of the butterfly would be failure of the downtrend.

A successful butterfly would be a failure of the bigger overall uptrend.

It's a high stakes moment.

But bears should be aware we could be 98% right here and still face a brutal stop run.

Protecting profits from higher entries now. Ideally want to size up into a spike.
Note
This spot was always the place to consider the most optimistic bear bets.
snapshot
Note
5800 or so would probably be the optimal spot for this. snapshot

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