SPX: Looking for similarities to the Wyckoff Distribution today?SPDR S&P 500 ETF TrustBATS:SPYJacubSame pattern as today. Wyckoff Distribution is a key concept in the Wyckoff Method of technical analysis, describing the phase where large institutional investors quietly sell their holdings (distribute them) to retail traders after a strong uptrend, signaling an upcoming market reversal from bullish to bearish (a "markdown"). It's characterized by a sideways trading range, increased selling pressure (supply overcoming demand), and specific chart events like Buying Climaxes (BC), Upthrusts (UT), Upthrust After Distribution (UTAD) and Signs of Weakness (SOW), helping traders identify top formations and potential shorting opportunities. Key Characteristics & Phases Follows an Uptrend (Markup): Occurs after a period of rising prices where demand was strong. Smart Money Exit: Large players (the "Composite Operator") sell shares, often tricking retail traders into buying more as prices seem stable or slightly rising. Phases (A-E): Phase A: Stops the uptrend with a Buying Climax (BC) and Automatic Reaction (AR). Phase B: Price moves sideways within a trading range, testing support/resistance. Phase C (Upthrust/UT): A false breakout above the range's high, trapping buyers, often followed by a sharp reversal (Upthrust After Distribution - UTAD). Phase D: Supply becomes dominant; signs of weakness (SOW) appear, with lower highs and higher lows. Phase E: The downtrend (markdown) begins as the market breaks below the range, with high volume confirming supply's control. Purpose for Traders Identify Market Tops: Helps spot the end of bull markets. Anticipate Downtrends: Signals the transition to a bearish markdown phase. Find Shorting Entries: Provides high-probability setups for short positions, often on the pullback after a sign of weakness or breakdown. The SP500 has gone through the same Wyckoff distribution pattern marking its last 2 tops.