SPX Trapped longs are in for a lot of pain
#ES_F / # SPX / # Sp500.
The SP500 futures index lost 2% today. Everything would be fine, we’ve seen bigger drops, but this time the structure of the chart looks more like a Distribution model with goals much lower. From November to the last week of December, the index was in consolidation, after which a breakout followed as part of the “Christmas Rally”. Many traders now see a "book" retest of resistance after a breakout, expecting that this level will become support, but the reality will be much more painful: there is a higher probability of a bull-trap and the price will be brought under the $ 4520, 4485 lows.
The SP500 futures index lost 2% today. Everything would be fine, we’ve seen bigger drops, but this time the structure of the chart looks more like a Distribution model with goals much lower. From November to the last week of December, the index was in consolidation, after which a breakout followed as part of the “Christmas Rally”. Many traders now see a "book" retest of resistance after a breakout, expecting that this level will become support, but the reality will be much more painful: there is a higher probability of a bull-trap and the price will be brought under the $ 4520, 4485 lows.