Morning Market Update
Coiling at Key Levels – Next Big Move Coming?
📈 Morning Market Update for Subscribers
🔍 Coiling at Key Levels – Next Big Move Coming?
The market is consolidating after yesterday’s strong session, hovering near critical magnet levels at 6130 ($ES) and 22100 ($NQ). This signals traders are positioning ahead of the next major move. Today’s session will determine whether we get a continuation to new highs or if sellers can finally force a meaningful pullback.
---
📊 Market Overview & Open Pivots
🔹 $ES Open Pivot: 6131
🔹 $NQ Open Pivot: 22095
These pivots define the intraday balance point—a zone where price will either base for another breakout or fail and shift momentum.
🔑 Key Market Context
✅ NQ has led the rally, reclaiming 21971 overnight and tagging 22100. If it maintains strength, it can continue dragging $ES higher.
✅ $ES tested 6123 support and held—for now, buyers remain in control, but this needs to be defended.
✅ Upside targets are aligning at 6146 ($ES) and 22149 ($NQ).
✅ Downside risks grow if 6123 ($ES) and 21971 ($NQ) fail.
---
📌 Trading Plan & Key Triggers
🚀 Upside Potential – Bulls Must Hold These Levels
✅ 6123 ($ES) / 21971 ($NQ) – Critical Support for Continuation
If price holds above these levels, the squeeze remains intact.
Breakout Targets:
$ES → 6146 → 6180
$NQ → 22149 → 22400
🟢 Trigger for Long Entries:
A pullback to 6123 ($ES) or 21971 ($NQ) that holds as support.
Look for strong reaction, absorption of selling pressure, and a move back above the open pivots.
---
❌ Downside Risk – Where Bears Regain Control
🔻 Break Below 6123 ($ES) / 21971 ($NQ) Could Trigger a Pullback
If these levels break, it signals buyer exhaustion and opens the door for lower prices.
Potential Downside Targets:
$ES → 6107 → 6075
$NQ → 21800 → 21676
🔴 Trigger for Short Entries:
A failed attempt to reclaim 6131 ($ES) or 22095 ($NQ), with sellers stepping in aggressively.
Look for rejection wicks, lower highs, and a breakdown through support zones.
---
📚 Educational Insight: How to Trade a Manufactured Squeeze
A manufactured squeeze occurs when price action is pushed higher by forced short covering rather than fresh organic buying. These moves can be explosive but often end abruptly.
🔍 How to Recognize When a Squeeze Is Failing
1️⃣ Price Stalls Near Major Resistance – If we hover near 6130 / 22100 for too long without breaking higher, momentum is fading.
2️⃣ Declining Volume on Rallies – A strong squeeze requires sustained buying pressure. If volume slows down, the move may fail.
3️⃣ Break of Key Support Levels – If 6123 ($ES) or 21971 ($NQ) fail, it signals the squeeze is losing steam.
⚡ Trading Strategy for Squeeze Scenarios
Strong continuation → Look for long entries on pullbacks to support (6123 / 21971).
Squeeze losing momentum → Watch for rejection at resistance and potential short setups.
Failed breakout → If buyers get trapped above 6131 / 22095 and can’t push higher, prepare for a reversal.
---
🔎 Final Thoughts – Key Takeaways for Today
✔ $NQ has been the leader—watch 22100 carefully. If it breaks, we could see a fast move to 22400.
✔ $ES still needs to prove strength—buyers must keep price above 6123 to maintain control.
✔ Squeeze setups require confirmation—wait for price to validate direction before taking trades.
📢 Actionable Plan for the Day
🔹 Above 6123 / 21971 → Look for continuation toward 6146 / 22149
🔹 Below 6123 / 21971 → Watch for weakness and potential move to 6107 / 21800
🔹 Volume & reaction at key levels will dictate whether the squeeze continues or stalls
👀 Stay patient, execute your plan, and let the market dictate the next move!