Change of Character in MSI along with SPX/SPY difference getting interesting

We had talked about a bear flag that formed around 6/13-18 and how they are normally used against technical traders who expect the bear flag to break to the downside as per 100 years of Technical Analysis teaching, but Wall Street knows how predictable technical traders are, that they don't seem to adjust to the new realities of the market and follow the same 100-year old dogma religiously which makes it easy to predict what retail will do when faced with certain technical price patterns or situations, which in turn makes it easier to predict how Wall St. will use those against them, for instance we were specifically talking about how a bear flag like the one mentioned above, would normally see a Wall St. head fake move ABOVE the flag rather than below as 1`00 years of TA have taught, before price resolves in the initial direction of the bear flag (down).

Take a look at not only that, but the difference in the shape of price between the SPX and SPY above the bear flag and of course the significant change in the Most Shorted Index today.

 Interestingly, it seems to be the F_O_M_C knee-jerk move that caused the break above the bear flag, look at the SPX's price shape in the white box vs. the demand (risk) driven SPY.

 A bit different...

As for today though, one of the more significant changes in character is the MSI as we saw earlier, but it's getting more extreme.

MSI (red) Most Shorted Index and the F_O_M_C squeeze, a squeeze all of Friday afternoon that did almost nothing for the market, a failed squeeze on the open today and now it moving a lower lows....

It's starting to feel like the F_O_M_C "knee jerk" is starting to be faded as the knee-jerk move (bullish or bearish) has a high historical rate of being the wrong move (direction), which also brings the bear flag back in to play as Technical traders are taught, "If a price pattern doesn't resolve as expected, switch positions", meaning a bear flag that some may have shorted that fails would mean they cover their short and go long, however with stops likely in the $195.30-$194.40 area, a lot of selling could take place as stops from recent long trades (per the knee jerk move) are hit.