4900 Resistance Fill.
Possibilities for tops or extended blow-offs.
We have met a major inflection point as SPX trades near 4900.
In this area we either see a successful bearish butterfly (Implying we’re making a top around here) or we’re going to see a butterfly failure which would typically denote a strong move to at least 5000 (And I’d say we’d be looking more 5200 - 5600 on the upside if we break here.
If the butterfly is going to work in a typical way, we’d be making the high here in the 4890 sort of price area (With tolerance for a spike to 4910 or so).
Next, let’s look at different ways we can derive resistance levels. If the butterfly breaks, it’s very likely we’re going to go hard and fast to the next resistance level. We have somewhat of a paradox here in that this is a great spot to short but if it does not work we can see a 10% spike (Legit case to be made for a fast 10% spike).
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