It’s the B-side of growth called ‘bad’ market action. And right now Spotify Technology (NYSE:SPOT) has been flipped over to this less-popular track on the price chart, much to the delight of SPT stock bears.

Well, maybe. Let me explain.

At one point not too long ago, part of Spotify stock’s problems with investors could be blamed on the broader market’s correction and ever-brief, late 2018 bear market. But that’s no longer the case.

This year’s continued bullish change of tune in the major averages on Wall Street has nonetheless seen a bearish flip in Spotify toward the bad side of market behavior. And it’s the price action in SPOT stock that’s worth listening to for both bulls and bears.

Off the chart and based on the volume of coverage from Wall Street, at the top of the list of the myriad of reasons for Spotify stock’s current relative poor price performance is the company’s well-telegraphed tangle with tech behemoth Apple (NASDAQ:AAPL).

Apple charges a 30% App Store charge for content-based service providers like SPOT to use its in-app purchase system. Earlier this month Spotify filed an EU antitrust complaint that practice. Spotify case certainly sounds like it has merit. Still, it’s picked a fight with the world’s largest company and, bottom-line, the “iTech” maker  is well equipped to win lengthy battles and telling the competition — to steal a line from Ray Charles — ‘Hit the road, Jack’.

Having said that, while some investors wait on a verdict from Europe’s regulators, that other authority known as the price chart has many others already doing taking Ray’s advice on SPOT stock.

SPOT Stock Daily Chart

No doubt Spotify stock has enjoyed a good run in 2019. Shares are up 33% from late December’s bear market low that coincided with the broader market’s own corrective bottom. And that gain also dwarfs the tech-heavy NASDAQ Composite index’s own 25% rally.

But there’s been a bearish shift in Spotify shares since the Apple news was announced. And in this strategist’s view, it’s worth listening to and potentially profiting from a short position in SPOT stock.

Since an initial breach of Spotify’s uptrend line on March 1, where price action which found support from the stock’s former lows, the bullish technical case for SPOT has continued to weaken. The mid-March legal complaint marked a lower high pattern set against the former trend-line. Moreover, a second lower high and new low in share price has confirmed an emerging downtrend.

How To Play Spotify Stock

So, what’s an investor to do? If you’re currently long Spotify stock, respect this week’s closing low of $133.35 and exit the position due to aforementioned reasons evident from the price chart. That would find shares beneath the former low with SPOT looking bearish enough to warrant an exit ahead of the crowd.

And what if you’re bullish and looking to go long SPOT stock? The truth is our described emerging downtrend has a bullishly upbeat flip-side known as an undercut double-bottom or “W” pattern. Having played the pattern successfully on plenty of occasions, I get it.

Again, though, I’d respect this week’s lows in Spotify stock as this bullish technical argument could be invalidated.

And what if the B-side or bad side of market action persists? For investors that wish to lay down bearish tracks of their own, shorting shares while others rightfully ‘hit the road’ looks like a great entry in conjunction with a trailing stop of 8%.

Disclosure: Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits.