BEAR-TRAP : GAP Reversal May Lead To Larger EPP Flagging

Pay attention to the dual Excess Phase Peak (EPP) patterns in the SPY this morning and how the current GAP Reversal pattern may resolve as a base/bottom in the markets in early trading.

I believe the markets will shift from this early breakdown into a moderate upward (Flagging) trend.

Learning to anticipate these types of shifts in the market can help you plan and prepare for future price trend rotations.

Knowing the SPY is likely to attempt to base/bottom from a broader EPP pattern (moving into the sideways Flagging stage #2) suggests traders may attempt to prepare for a 0.75% to 1.25% upward price swing over the next 2 to 4+ days.

This aggressive downward selling aligned perfectly with my SPY Cycle Patterns. Now, this low may be the Base/Bottom I'm expecting to shift into the FLAGGING phase of the larger EPP pattern (#2).

Buckle up. This should be fun.

Looks like a BEAR TRAP in the making.

Get some.

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