Power Hour Update for Subscribers
Bear Traps, Knee-Jerks & Market Caution Ahead
📢 Power Hour Update for Subscribers
🔁 Bear Traps, Knee-Jerks & Market Caution Ahead
📊 Power Pivots
🔹 $ES: 5640
🔹 $NQ: 19442
Today’s session delivered a full round-trip.
Prices dipped early, setting traps at 5600 ($ES) and 19300 ($NQ) — both key support zones. The sharp recovery was textbook: panic low > reversal > grind higher.
But that rally stalled right into our upside levels:
🔺 $ES: 5675
🔺 $NQ: 19500
Once again, buyers exhausted into resistance, and prices rolled over, now dipping back under the Power Pivots. That’s the market showing us it’s not quite ready for sustained upside — not yet.
📌 Key Levels Into the Close
🔻 Support Zones
$ES: 5610 → 5584
$NQ: 19320 → 19240
🔺 Resistance Zones
$ES: 5675 → 5700
$NQ: 19500 → 19630
📚 Educational Insight: How to Trade the Knee-Jerk Reversals
A knee-jerk reaction happens when traders overreact to a big move — usually at extremes (like today’s test of the lows). It’s not the start of a trend — it’s usually a temporary squeeze or short-covering rally.
What we look for:
Traps near prior lows/highs
Fast momentum spikes back up
Sellers or buyers failing to hold key retest levels
Once price reverses and then stalls, like we’re seeing now, it tells us:
Buyers are hesitant.
Sellers are waiting above.
The trend likely continues… after the bounce fades.
🎯 Trading Scenarios Into the Close
✅ Scenario A: Failed Rally → Fade
If price stays below 5640/$ES and 19442/$NQ, look for a drift back down toward 5610 and 19320.
Strong signal of seller reassertion.
✅ Scenario B: Last-Hour Short Cover
If buyers reclaim 5675/$ES or 19500/$NQ again, expect a quick pop into the close.
Likely short-lived unless strong momentum and volume kick in.
🧠 Final Thoughts – Don’t Fight the Tape
This was a classic fade-the-rip session.
Bear trap early
Reversal rally
Exhaustion
Drift back lower
Stay tactical. Don’t marry trades. Take profits fast.
This is not a trending environment yet — it’s reactionary and rotational.
Risk small, trade smart, and let the market tip its hand.
#PowerHour #AuctionTheory #NQ #ES #MarketUpdate #FadeTheRip #BearTrapReversal