SPY: The Matryoshka Pattern Points to Massive Downside TargetState Street SPDR S&P 500 ETFBATS:SPYSmellyTazWe have a fascinating "Matryoshka" (nested) ABC correction pattern developing on the 1-hour SPY chart. While the market has seen a recent short-term bounce, the macro structure remains heavily bearish as long as key resistance levels hold. Here is the breakdown of why the Orange Matryoshka (C) Target is very much on the table. 📉 The Setup & Nested Structures The chart shows a sequence of nested ABC correction waves playing out perfectly: The Micro Black ABC: Completed its corrective bounce right into the designated target box near $755$. The Inner Pink ABC: Triggered a sharp decline from the June 15th high, finding a temporary bottom near the $715$ area. The Macro Orange Matryoshka: This is the overarching pattern driving the larger trend. The initial impulse leg down (A) and the subsequent corrective rally (B) are fully locked in. 🎯 Target and Invalidation Levels The macro structural thesis is simple: We are tracking the major Wave (C) extension lower. The Ultimate Target: The orange ABC Target zone sits between $680.00 and $695.00. The Invalidation Level: A clean break and daily close above the Wave (B) high (~$757.00) invalidates this entire bearish macro outlook. If price invalidates here, the bearish structure breaks, and we look for new highs. 🔄 Current Price Action (The Pivot Point) Right now, price is consolidating inside a Weekly Control Level (WCL) bounce zone around $745.00. Bearish Case: This recent rally looks corrective, retesting broken structures. As long as it remains capped under the Invalidation line, the gravity of the large orange (C) target remains the dominant directional force. Execution Note: It may take time, and we could see more choppy consolidation around the $745$ level before the next major leg down accelerates, but for now, the path of least resistance points lower. Risk Management: Always protect your capital. A strict stop-loss or invalidation trigger sits just above the Wave (B) peak. If they break that, the bears lose control. What do you think? Will the Matryoshka pattern fully play out to the $680–$690 zone, or will the bulls squeeze past the invalidation line? Let me know in the comments! 👇