$ES Sell Signal Triggers: A Third-Wave Decline Could Be Next

The bearish setup is now active.

$E-mini S&P 500 - main 2612(ESmain)$ has triggered a sell signal after several technical factors aligned: bearish SMT divergence against $YM at the prior week's high, followed by an inverse Fair Value Gap (iFVG) entry trigger.

The weekly chart is adding another warning.

📉 $ES: The Bearish Case

Three signals are lining up:

1️⃣ Bearish SMT: $ES and $YM showed relative weakness at the previous week's high, signaling a potential loss of upside momentum.

2️⃣ iFVG Trigger: Price subsequently confirmed the bearish setup through an inverse Fair Value Gap, providing the entry signal.

3️⃣ Weekly Candle Sweep: The weekly chart also printed a bearish sweep, adding higher-timeframe confirmation to the setup.

🎯 Downside Levels

The current thesis looks for a potential third-wave decline toward the September low.

The 100% Fibonacci extension of Wave 1 converges around that same area, adding another layer of technical confluence.

Key downside targets:

• $E-mini S&P 500 - main 2612(ESmain)$ : 7,575

• $S&P 500(.SPX)$ : 7,500

• $SPDR S&P 500 ETF Trust(SPY)$ : 748

A relief bounce remains possible before another leg lower. In that scenario, the daily iFVG zone is the key resistance area to watch.

The bearish thesis remains in focus as long as price fails to reclaim that zone.

🔥 $Amazon.com(AMZN)$ : ABC Model Short Is Playing Out

Another bearish setup is developing in $AMZN.

The sequence followed the ABC reversal model:

• A: Initial reversal structure

• B: Higher-timeframe candle sweep

• C: Entry trigger and downside continuation

Today's price action delivered a sharp move lower, with the anticipated C-wave decline unfolding quickly.