BEAR TRAP in SPY?

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🐻 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.

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