Morning Update for Subscribers
Sellers Step Up Overnight – Key Levels in Focus Today
📢 Morning Update for Subscribers
📉 Sellers Step Up Overnight – Key Levels in Focus Today
📊 Open Pivots
🔹 $ES: 5621
🔹 $NQ: 19374
🕯️ Overnight Recap
Markets slumped again overnight with $ES dropping over 50 points from yesterday’s close (5674). The bears managed to crack key intraday supports, especially the 5625 and 5600 zones — both of which served as major structural references during yesterday’s session.
This overnight action creates major imbalance heading into the RTH open.
📌 Key Reference Levels for Today
🔻 Downside Reference Points
5600 gap level: Big magnet today; could act as support or trap.
5575 / 5535: Next leg down opens up if 5600 fails decisively.
🔺 Upside Reference Points
5625 (yesterday’s IB midpoint): Expect resistance here if tested from below.
5674 (yesterday’s close): Key to regain for upside narrative to reassert.
📚 Market Education: Don’t Argue with Price
When volatility picks up and fakeouts span 50–100 points, it’s easy to get emotionally reactive. But remember:
🎯 “Price is always right. We’re only wrong when we fight it.”
In these environments:
Do less, not more
Focus on key reference levels (prior closes, IB midpoints, gaps)
Let the market show its intent before committing capital
If you try to “outsmart” these moves, you’ll get steamrolled. Instead, listen to the tape, and let confirmation be your edge.
🎯 Trading Scenarios for Today
✅ Scenario 1: Breakdown Continuation
Below 5600, price likely flushes toward 5575 then 5535
Watch for strong volume spikes to confirm breakdown
✅ Scenario 2: Failed Breakdown → Snap Reversal
If price quickly reclaims 5600 and stabilizes above 5625
Look for rally attempts toward 5674 (yesterday’s close)
✅ Scenario 3: Choppy Mean Reversion
Price oscillates between 5600–5625 throughout the session
Ideal for scalpers, not great for directional trades
📌 Final Thoughts – Be Patient, Be Precise
We’re trading in a highly reactionary and news-sensitive environment. The overnight breakdown gives sellers the edge, but things can shift fast. Key levels will show us the intent — don’t jump ahead of the evidence.
Stay focused, trade small, and respect the zones.
Let’s get to work.