Wolfe Waves are 5-leg reversal patterns found in all markets and timeframes.

They provide a built-in price target line and an estimated time of arrival.

Bullish Wolfe = falling wedge. Bearish Wolfe = rising wedge.

Key rule: Wave 5 must overshoot the trendline from waves 1 to 3.

Look for symmetry, proportional waves, and a clean reversal at point 5.

Most traders mess this up by forcing the pattern or ignoring the setup rules.

Use Wolfe Waves for timed entries, precise targets, and swing reversal setups.

Fits seamlessly into our Tag ‘n Turn and SPX Income Swing strategies.

TLDR: 2025’s Market Reversal Is No Ordinary Pullback

S&P 500 is down roughly -10% YTD (April 17)

All 11 sectors posted negative or flat returns, except staples and utilities

MAG7? Down bad: Tesla -35%, Apple -15%, Nvidia -15%, Microsoft -11%

In 2024, same time? SPX was +10%, 10 of 11 sectors were green

2025’s Trump 2.0 regime is spooking markets: tariffs, trade war, inflation fears

This April is eerily opposite to his first term: 2017 saw a quiet +5% climb

Seasonality suggests more chop ahead: May-August is usually weak

Defensive sectors are leading… historically a warning sign, not a buying signal

All signs point to short-term bear swings with selective bounces

Trump may intentionally crash the stock market to trigger lower interest rates.

A market drop forces the Fed’s hand – cutting rates to stabilise the economy.
Lower rates allow Trump to refinance U.S. debt and ease inflation.
Tariffs + recession = pressure for companies to move manufacturing back to the U.S.
A crash could hurt the wealthy (who own most stocks) while lowering everyday costs for voters.
Confusion, chaos, and volatility actually strengthen Trump’s campaign position.

For traders using pulse bar setups and credit spreads – volatility = income.

The 1930s gave us Smoot-Hawley.

2025 gave us “Liberation Day” tariffs.
Both created global economic chaos – just with better graphics the second time.
This isn’t a history class… it’s a market-moving déjà vu with real-time portfolio pain.
SPX sectors are already feeling it – tech, autos, agri, and retail are bruised.
Politicians slap tariffs. Markets slap back.
But unlike 1930, you’ve got tools, options, and rule-based setups (hint: Pulse Bars).

The lesson? Don’t trade like it’s 1930. Trade like it’s Wednesday morning with a plan.

Would Warren Buffett trade SPX credit spreads today?
Short answer: probably.

Back in 2008, Buffett made billions selling long-dated put options.
He bet the market wouldn’t crash over the next 10 years.
He got paid.

But most traders don’t have 10 years (or 10 billion) to wait around.

So what’s the 2025 version of that strategy?
– Short-dated SPX credit spreads.
– Same index
– Same edge
– Faster paydays
– Defined risk
– Repeatable every week

Ready this fun breakdown on how Buffett’s legendary move has a modern upgrade for today’s traders.

The worst week for global equities since COVID just unfolded.

Dow fell 2,200+ points Friday. Nasdaq & Russell 2000 = Bear market territory.
The “Magnificent 7” tech stocks lost $1.4 trillion in market cap – in one week.
VIX exploded higher – its biggest spike since Feb 2020.

Oil plunged 11%, worst week since March 2023.
Copper collapsed like it was 2008.
Gold cracked too – worst day since Nov 2024.

US credit markets had a lockdown-era-level meltdown.
Bitcoin stayed green while everything else bled. Ethereum: flat and cautious.
Highest US trading volume day ever on Friday = sheer panic.
Stagflation whispers and recession fears are gaining ground.