Another interesting aspect of this setup is the correlation to the PUT/CALL ratio on the chart below. Every instance of the Put/Call ratio that fell below 0.80 for an extended period of time (2014, 2018 and now), prompted a downside price reversion of -10% to -15%. Additionally, each instance of this setup (2014 and 2018) prompted an extended period of price volatility and rotation. In 2014, the initial downside price reversion prompted a -13% to -15% price correction followed by nearly 8 to 10 months of extended price rotation before finally entering a new bullish price trend in late 2016. Additionally, in 2018, the initial downside price reversion event wiped out nearly 12% of the value on the initial downside price move from this event. Subsequently, over the next 12+ months, a second downside price move wiped out over 20% of the value from the SPY. The current setup suggests any potential downside price reversion resulting from this setup we are alerting you to could easily target -12% to -15% on an initial reversion event. Ultimately, the rest of 2020 could result in a very volatile year of price rotation if history teaches us anything.