$SPX Bull Trap Back in Play as 7,657 Becomes the Key Level
$S&P 500(.SPX)$ just reversed sharply from the highs, and the bearish structure is getting clearer. 📉
The current move is shaping up as a 5-3-5 pattern:
🔻 5 waves down from the highs
🔺 Looking for a 3-wave bounce
🔻 Then potentially another 5 waves down
That makes any bounce tomorrow something I’ll be watching closely for a potential sell-the-rally setup.
🎯 First downside target:
The weekly low / open weekly gap.
But there’s another important signal developing.
⚠️ Bearish SMT vs $NASDAQ 100(NDX)$
$SPX is now sitting inside Daily FVG support, while a fresh bearish SMT has appeared against $NDX around the August high.
That adds another layer of caution to the setup.
📍 The level that matters most: 7,657
A daily close below 7,657 would confirm the breakdown in my framework.
That would effectively invert the Daily FVG and open the door for the next wave lower.
👀 My current lean
I’m expecting the bounce to be sold rather than chased.
If 7,657 breaks on a daily closing basis, the bearish 5-3-5 structure gets significantly more interesting.
Until then, the FVG remains the battleground.
Bottom line: $SPX has shifted from a clean rally setup to a potential bull trap, with 7,657 now acting as the key line between support holding and the next wave down. 📉🐯
Markets are always moving - and sometimes, the best move is knowing what works for you.
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