On April 16th we highlighted a weekly chart technical theme, which is the Reverse Symmetrical Triangle (AKA Megaphone) pattern. In full disclosure, I first saw the Rev-Sym-Tri elsewhere as noted in the post. But at least I was not so dumb as to ignore it. No, instead NFTRH has highlighted it every week since.
We had the 5 point reversal scenario in play and added a potential bull trap scenario, which would be a trap by definition if SPX were to climb to point 5 and point 5 would contain the market. The thing had to break out to blue sky in order to get to 5. Now the breakout is failing and the bulls were trapped. Is it a mini or a maxi trap (this up trending market has built in a lot of support, after all)? That answer will be forthcoming. But for now the “jaws of death” are closing on the bulls.
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