🐻 BEAR TRAP in SPY?
After a sharp correction, SPY is showing a possible Bear Trap formation — right at the zone where the market often catches short sellers off guard.
📊 The pattern resembles the "First Sentiment Extreme" > Shakeout > Bear Trap phase from the classic market psychology cycle (see inset chart).
🔍 Supporting signs:
RSI bouncing off oversold territory (currently at 49.32)
MACD showing a bullish crossover forming
A strong bounce after a panic flush
If this is indeed a bear trap... 📈 we could be at the early stage of renewed optimism. The next few candles are crucial — confirmation could ignite a sharp reversal.
🧠 Don’t chase. Wait for confirmation. But stay alert.
After a sharp correction, SPY is showing a possible Bear Trap formation — right at the zone where the market often catches short sellers off guard.
📊 The pattern resembles the "First Sentiment Extreme" > Shakeout > Bear Trap phase from the classic market psychology cycle (see inset chart).
🔍 Supporting signs:
RSI bouncing off oversold territory (currently at 49.32)
MACD showing a bullish crossover forming
A strong bounce after a panic flush
If this is indeed a bear trap... 📈 we could be at the early stage of renewed optimism. The next few candles are crucial — confirmation could ignite a sharp reversal.
🧠 Don’t chase. Wait for confirmation. But stay alert.
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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.
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.