This chart shows the case, which seems reasonable except that Many people are seeing it and the S&P doesnt follow what people think will happen. With at current levels, it's best to short or day trade it as direction isn't clear at this point.
1- Megaphone top
3- much damage has been done to the uptrend
4- until beginning of October
5- Tariffs and china devaluing the Yuan
1- still hasnt dropped and closed below 200 Day MA
2- All CB's easing >> "Dont fight the fed"
3- Shock events like the ones we had the past few days usually end with selling culmination followed by a melt up and fuel for a big rally, and we might just have had that on Monday, think of Brexit, China in Aug 2015, Elections night
4- at this point the worst seems to be priced in or almost
5- strong and expectations are low
6- Almost all "widely Known" setups (like the megaphone now) fail
I'm currently neutral, let's see if 200 Day MA gets tested or if Bulls reclaim the 100 and 50 Day MA's
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