There are two competing chart patterns in the S&P 500 right now. One's bullish, the other is bearish

June has been a roller coaster for both market bulls and bears. This stat tells us all we need to know: The SPX has now logged seven absolute 1% moves for the month, with five trading days still remaining in the month. That may not sound like a lot, but it represents roughly one-quarter of the month still to go, and given the market's recent behavior, it wouldn't be surprising to see several more outsized moves before month-end. The current total of seven is already the most since March (nine). Before that, the last time we saw more than seven absolute 1% moves in a single month was April 2025, when there were 12. That kind of inconsistent price movement has created something we haven't seen in a while: we now have two active chart patterns in play for the S & P 500: one bullish and one bearish: Bull flag – the bullish pattern that has now been active for two months. Diamond reversal – the bearish pattern that triggered Tuesday and is now in motion. Interestingly, both patterns project targets that are roughly 4% away from current levels. Let's start with the bull flag. The bull flag pattern remains firmly in play with an upside target of 7,680. As we've noted numerous times to CappThesis clients, the most constructive aspect of this setup was the immediate extension following the April breakout. That helped pull the SPX close to its upside target by the end of May and, in the process, created a meaningful cushion. …