Power Hour Update for Subscribers
Limit Down Nearly Hit – Wild Volatility Confirms Bear Market Structure
📢 Power Hour Update for Subscribers
🔻 Limit Down Nearly Hit – Wild Volatility Confirms Bear Market Structure
📊 Power Pivots for the Session:
$ES: 5320
$NQ: 18545
The markets delivered another extremely volatile day, dropping sharply and nearly hitting limit down before a sharp rebound. Our 5525 sell level yesterday continues to prove incredibly reliable, once again catching the top before today’s major flush.
📉 Breakdown & Reversal
$ES dropped to 5146 and staged a sharp bounce after holding the line.
$NQ found support just above 18000 before recovering.
These sharp reversals are expected in this phase of the cycle—fast down, fast up—but they don’t necessarily mean the bottom is in.
📌 Key Zones into the Close
Watch $ES 5350 and $NQ 18500 for clues into how this session closes.
A close above these zones may invite a short-term rally continuation toward 5500–5525, which was yesterday’s rejection zone.
A close below these levels increases the probability of another breakdown attempt overnight or into Friday.
📉 Downside Outlook Still Intact
Despite today’s bounce:
$ES 5300 → 5146 → 5000 → 4800 → 4600
$NQ 18300 → 18000 → 17600 → 17100 → 16400
These are still in play unless bulls reclaim and hold above 5525 ($ES) and 19100 ($NQ) with conviction.
📚 Educational Insight: Reading Extremes in Bear Markets
📌 Why the Market "Almost" Hit Limit Down
Limit downs act as emergency circuit breakers, and the proximity today shows just how much liquidity vanished during the decline.
Bear markets are not just downtrends—they are volatility engines fueled by rapid repricing, news shocks, and liquidity holes.
📌 Extreme Moves = Fuel for Reversals
These violent drops set up fuel for massive squeezes, but that doesn't reverse the trend.
Don’t confuse a sharp bounce with a new uptrend—bear market rallies are violent and short-lived.
📌 How to Trade This
Fade euphoria at resistance (like we did at 5525).
Wait for panic at support to consider bounce trades (like 5146 today).
Never chase—discipline beats prediction in volatility regimes.
🛠 Final Thoughts
5525 held again as the final line for sellers.
Prices bounced off 5146, which may act as a key intermediate low—unless broken decisively.
Close above 5350/18500 = short-term squeeze likely.
Close below = we open the door for 4800 ES and possibly 4600 over coming days.
Stay sharp. This is a bear's market, and every rally is a test of nerve.
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