Prospero.ai data predicts market fall again. Here is the timeline...

Markets often look calm right before they turn, and this week was no exception.

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On October 9th, we issued a Prospero alert on X that raised immediate concerns about the state of the market:

“ALERT $QQQ Net Option Sentiment just COLLAPSED to 0 this morning. It was bullish yesterday. Y’all that’s not good. Don’t know what’s up but something is up.”

That drop to zero in our Net Option Sentiment, a measure that reflects how option traders are positioning, has historically preceded pullbacks. When that number hits rock bottom, it’s rarely by coincidence.

By 10:14 AM today, we shared another update reinforcing the same concern:

“ALERT 2nd day in a row that QQQ Net Options has been at 0 (out of 100). Historically, when our signals stayed at 0 for multiple days it indicated pullback is in the cards. Keep in mind that things change quickly in this market, but definitely a warning to be on guard.”

At the time we sent that second alert, QQQ was trading at $611.82. Just 90 minutes later, it had fallen to $598.69, a 2.1% drop in under two hours.

This is yet another instance where Prospero’s most popular indicator, Net Options Sentiment, forecasted market movement within 24 to 48 hours in advance of a major turn.

This pattern isn’t new. Earlier this year, on March 30th, 2025, we published our letter “Don’t Trim the Hedges” warning subscribers of a sharp downside risk and emphasizing the importance of using inverse ETFs during such times. Just days later, on April 2nd, what we called “Liberation Day” began triggering a market decline of over 10% in two days.

The lesson remains clear:
When Prospero’s signals flash red, it pays to listen.