S&P 500 has been in a near-vertical rally. VDS has just printed a SELL signal on the 4H chart.

Parabolic rallies are the hardest places to open a short. Everything feels unstoppable, bullish sentiment reaches an extreme, and every dip gets bought.

That's exactly why I pay attention when VDS starts flashing warnings.

I'm not claiming this is the top. The market can always squeeze higher before reversing. But statistically, these are the moments where I prefer looking for short opportunities instead of chasing longs.

The broader trend still has room to continue. If buyers stay in control, the S&P 500 could eventually reach 8,000 on the index (roughly 800 on the synthetic SPY perpetual traded on crypto exchanges).

For now, though, I'm taking the short side.