Morning Update for Subscribers
Consolidation or Continuation? Key Levels to Watch
📈 Morning Update for Subscribers
🔍 Consolidation or Continuation? Key Levels to Watch
📊 Market Overview & Open Pivots
The market is currently consolidating around our 5627 ($ES) and 19500 ($NQ) levels, creating a pivotal moment.
Is this a bottoming attempt or just a pause before continuation lower?
Yesterday's close above 5600 was constructive, but price action needs follow-through.
Failure to hold these levels could lead to another leg lower.
📌 Open Pivots:
🔸 $ES: 5637
🔸 $NQ: 19490
📌 Key Levels & Trade Setups
🚀 Upside Scenarios – Potential for a Squeeze
✅ $NQ Above 19570 → Could trigger a run to 19800
✅ $ES Above 5650 → Could squeeze back toward 5718 (yesterday's breakdown level)
If price reclaims and closes above these zones on a 30m chart, it signals buyers regaining short-term control.
Momentum Target: 5718 ($ES) and 19800 ($NQ).
⚠️ Bearish Scenarios – Further Breakdowns
🔻 $ES Below 5627 & $NQ Below 19500 → Opens the door for new lows
🔻 Risk of drop toward 5565 ($ES) and 19250 ($NQ)
Price consolidating at these levels is not necessarily bullish—it could just be a pause before continuation lower.
If buyers fail to hold 5627-5637 ($ES) and 19500 ($NQ), expect another wave of selling.
🔑 Key Battle Zones Today:
📍 $ES: 5627-5650 → Break & hold above = squeeze higher, rejection = continuation lower.
📍 $NQ: 19500-19570 → Same logic: A break above suggests upside momentum, failure suggests more selling.
📚 Market Education: How to Trade in High Volatility
🔺 Why Volatility Matters & How to Adjust Your Trading
We are in a period of extreme volatility, and big moves can happen in the blink of an eye.
📌 Key Adjustments for Trading in High Volatility:
✅ Trade Smaller Size – Reduce risk exposure while maintaining flexibility.
✅ Use Wider Stops – Avoid getting shaken out by short-term wicks.
✅ Wait for Confirmation – Don’t chase price; let it prove its direction.
✅ Risk Management is Paramount – This environment can blow accounts quickly.
Example:
📍 If $ES is at 5637 and quickly moves to 5650, wait for confirmation before entering a trade—does price hold above, or is it a fake-out?
🔎 Trading Plan for Today
📍 Scenario 1: Bullish Reclaim & Squeeze Higher
If $ES breaks 5650 and $NQ clears 19570, expect short covering.
Target Areas: 5718 ($ES), 19800 ($NQ).
Stop Loss: Below 5627 ($ES) & 19500 ($NQ) to confirm strength.
📍 Scenario 2: Rejection & Continuation Lower
If $ES stays below 5627 and $NQ remains under 19500, look for further downside.
Target Areas: 5565 ($ES), 19250 ($NQ).
Stop Loss: Above 5650 ($ES) & 19570 ($NQ) to invalidate the move.
📌 Final Thoughts – High Volatility, High Risk
✔ The market is at a key decision point—either it finds support and squeezes higher or continues lower.
✔ Sellers are still in control, but a short-term squeeze is possible.
✔ Watch for confirmation before committing to a trade.
✔ Risk management is critical—don’t let the volatility shake you out.
🔎 Stay disciplined, follow the key levels, and let price action guide the trade!
#SubscriberUpdate #MarketAnalysis #RiskManagement