Morning Market Update for Subscribers
Pivot Trends Emerging
📈 Morning Market Update for Subscribers
Pivot Trends Emerging – Markets Continue Lower
📌 Market Overview & Open Pivots
$ES Open Pivot: 6005
$NQ Open Pivot: 21421
One thing we can see clearly is a trend forming in the pivots. Each session, the pivots are shifting lower, a clear indication that the market is in a sustained downtrend. Lower pivots suggest that sellers remain in control, with each rally being met with more selling pressure.
🔍 Price Action Since Our Last Update
Yesterday, we saw another wave of aggressive selling, with $ES trading below 5995 and nearly hitting 5950. $NQ followed suit, dropping below 21405, reinforcing the bearish outlook we discussed in Power Hour.
Key observations from price action:
✅ Rallies continue to fail at key resistance zones (6030 ES, 21575 NQ).
✅ Sellers aggressively sold into bounces, preventing any sustained upside.
✅ Markets traded lower, staying under 6050 for a second consecutive close, reinforcing the downside momentum.
This behavior suggests we are still in a controlled distribution phase, where sellers continue offloading positions into failed rallies.
🔑 Key Levels & Trade Scenarios
📉 Downside Risks – Can the Market Find a Floor?
$ES key support levels: 5995, 5980, 5950
$NQ key support levels: 21350, 21200
If we see continued selling, these levels become critical for any potential bounce. A failure to hold could lead to another liquidation event.
🚀 Upside Recovery – Bulls Have Work to Do
$ES resistance: 6030 → 6050 → 6075
$NQ resistance: 21575 → 21700
Buyers need to reclaim these zones to regain control and shift momentum. Any failed attempt to break back above 6050 will likely result in another leg down.
📚 Educational Insight: Recognizing Pivot Trends in a Downtrend
One of the most valuable insights in a trending market is tracking the pivots. Lower pivots signal continued selling pressure, while higher pivots indicate potential strength returning.
When pivots trend lower: This confirms sellers are firmly in control and that the path of least resistance is down.
When pivots begin stabilizing or rising: It signals exhaustion in selling and the potential for trend reversals.
Right now, pivots are clearly trending lower, meaning we should still favor short setups on failed bounces until we see confirmation of a shift.
🎯 Trading Plan for Today
Bearish Continuation Scenario:
Below 5995 ES / 21405 NQ, look for continuation shorts targeting 5980-5950 ES and 21350-21200 NQ.
Bullish Reversal Scenario:
Only if buyers reclaim 6030 ES / 21575 NQ with strength, we could see short covering back to 6050 ES / 21700 NQ.
🧠 Final Thoughts
The trend remains bearish, and price action confirms that sellers are still dictating the market. Until we see pivots stabilize and price start closing above key resistance levels, rallies are shorting opportunities rather than signs of strength.
Keep an eye on 5995 and 21405 for today’s direction! Stay disciplined and let the market tell you what it wants to do.
📊 Stay sharp, traders!