Power Hour Update for Subscribers
Short-Term Bottom or Another Trap? Key Levels Into the Close
📢 Power Hour Update for Subscribers
🔍 Short-Term Bottom or Another Trap? Key Levels Into the Close
📊 Market Overview & Power Pivots
📌 Power Pivots:
🔹 $ES: 5624
🔹 $NQ: 19655
✅ Observations & Key Developments:
Market found a temporary low—buyers defended 5561 ($ES) and 19405 ($NQ) and triggered a drop-and-pop setup.
Last week's close: Above 5770 ($ES) and 21200 ($NQ).
This week's price action: Still struggling below 5650 ($ES) and 19800 ($NQ).
🔹 Key Question: Is This Just a Relief Rally?
The market is rebounding, but is this just a rally before another major breakdown?
Next week will be critical—whether buyers sustain gains or sellers step in for another flush.
📚 Market Education: Recognizing False Bottoms & Reversals
Just because a market bounces from support doesn’t mean the bottom is in. A true reversal requires:
1️⃣ Higher lows & higher highs on key timeframes.
2️⃣ Sustained buying pressure instead of just short covering.
3️⃣ Holding above reclaimed levels rather than fading back into the range.
🚨 Warning Signs of a False Bottom:
Sharp rallies with no follow-through.
Repeated failure at resistance zones.
Volume drying up after the bounce.
Fast rejections at previous breakdown levels.
Watch today’s closing structure to determine whether this bounce has legs.
🔑 Key Levels & Trading Plan
🚀 Bullish Scenario – Confirmation of a Short-Term Bottom
✅ Key Upside Resistance Levels:
$ES: 5642 → 5670 → 5718
$NQ: 19775 → 19885 → 20100
🔹 How to Trade It:
A daily close above 5642 ($ES) and 19775 ($NQ) strengthens the case for a continued rally.
Break and hold above 5670 ($ES) and 19885 ($NQ) increases the likelihood of a test toward 5718 and 20100.
🔻 Bearish Scenario – Rally Fades & New Lows Ahead
🚨 Key Downside Support Levels:
$ES: 5590 → 5561 → 5535
$NQ: 19500 → 19405 → 19250
🔹 How to Trade It:
If price rejects 5642-5670 ($ES) or 19775-19885 ($NQ) and fails to hold, sellers may regain control.
A daily close below 5590 ($ES) and 19500 ($NQ) increases the probability of another leg down next week.
📌 Final Thoughts – Looking Ahead to Next Week
✔ Buyers have defended critical support, but must hold gains into the close.
✔ Rally may be suspect until resistance levels are broken with conviction.
✔ Next week will determine if this was just a relief rally before another sell-off.
✔ Watch for a close above 5642 ($ES) and 19775 ($NQ) to confirm continued upside.
🔎 Stay patient, let the price action confirm direction before making big plays!