Historic Pullback Unfolding
What Comes Next?
🔥 Power Hour Update for Subscribers
📉 Historic Pullback Unfolding – What Comes Next?
📊 Market Overview & Power Pivots
🔸 $ES Power Pivot: 6032
🔸 $NQ Power Pivot: 21698
What a wild session! We were spot on with our short calls, and the market is now experiencing a historic pullback, delivering a 400-point gain off a 10-point stop.
When real selling kicks in, it's always fast, brutal, and relentless. The key question now is:
1️⃣ Do we continue flushing lower?
2️⃣ Or do they "stick-save" and start the grind back up?
🔥 Key Levels to Watch Into the Close
✅ Downside Targets – How Low Can We Go?
🔻 6015 ($ES) – Major Inflection Level
This is a trap level—sellers need to force a break below to confirm further downside.
If buyers defend it, we could see a short-term bounce, but a weak reaction would just set up another leg lower.
🔻 6000 Psychological Level
If we dip below 6K, we could see a flush to the 5980-5995 zone.
Break below = deeper selling continues into next week.
🔻 5985 / 21400 ($NQ) – Extreme Selling Zone
If this area is hit today, watch for capitulation-style selling before a relief bounce.
✅ Upside Recovery – Where Bulls Must Step Up
🔹 6050 ($ES) – Key Close Level
A daily close above 6050 can say short-term support is forming.
If bulls can reclaim this, we may see another attempt toward 6095-6107.
🔹 6080 ($ES) / 21885 ($NQ) – Short Covering Triggers
These levels were key resistance zones before the breakdown—if we reclaim them, we could see some aggressive short covering.
However, this would likely be just a retrace, not a full reversal.
🎯 Trade Setups & Game Plan for Power Hour
Scenario 1: Breakdown & Continuation Short
📍 Entry: If price rejects 6050, look for a re-entry short.
📍 Stop Loss: Above 6060.
📍 Target 1: 6015.
📍 Target 2: Below 6000.
If sellers remain aggressive, expect a continued flush.
Scenario 2: Short-Term Bounce Long
📍 Entry: If price dips to 6015 and shows strong buyer absorption.
📍 Stop Loss: Below 6000.
📍 Target 1: 6050.
📍 Target 2: 6080.
This is a countertrend play, so keep stops tight and lock in profits quickly if a bounce materializes.
📚 Educational Insight: How to Trade Fast-Moving Sell-Offs
1️⃣ Recognize True Selling Pressure vs. Profit-Taking
When a market really wants to sell, it doesn’t just drift lower—it flushes hard and fast, with minimal bounces.
That’s exactly what we’ve seen today.
2️⃣ Why One-Day Dumps Often Retrace Over the Next Week
Market makers love to trap both sides—aggressively liquidating longs and then forcing shorts to cover later.
If we see a strong close back above 6050, the short-cover grind could begin soon.
3️⃣ When NOT to Catch a Falling Knife
If price hovers near a support zone without bouncing, it’s a sign of weak demand and likely to break lower.
The best bounces come after a fast flush followed by instant buy pressure.
🏆 Final Thoughts – More Selling or One-Day Event?
🔹 If we close above 6050 → Expect a grind higher over the next few sessions.
🔹 If we close below 6015 → The market likely has more downside ahead, possibly breaking 6K.
This has been an exceptional day for those positioned short. Now, we wait to see if bulls step in, or if this selloff is just getting started.
💪 Stay sharp, manage risk, and let's close out strong!