Power Hour Update for Subscribers
Critical Levels in Focus
📉 Power Hour Update for Subscribers
Selling Continues – Critical Levels in Focus
Good afternoon traders! It’s been a volatile session today as sellers once again overwhelmed buyers, continuing the aggressive selling momentum from Friday. The market opened with immediate downside pressure, and key supports gave way as prices pushed lower into our targeted levels.
Let's break down the current market structure and what's crucial into today's close.
📌 Market Overview & Power Pivots
$ES Power Pivot: 6030
$NQ Power Pivot: 21575
These power pivots represent today's critical intraday balance points:
A close above these pivots can relieve selling pressure temporarily.
A close below signals continued bearish dominance and risk for further downside tomorrow.
🔑 Key Levels and Scenarios into the Close
⚠️ Current Downside Situation:
Sellers swiftly broke our critical 6050 support. Prices dropped sharply and reached our lower target 5995 ($ES), with $NQ trading very close to 21405.
A second consecutive daily close below 6050 strongly suggests sellers remain in full control and are likely targeting deeper lows (such as 5950-5920 in ES and 21200-21300 in NQ).
✅ Buyers' Last Chance Recovery:
If buyers stage a late-session rally, watch 6030 ($ES) and 21575 ($NQ). These pivots must turn into support to alleviate bearish pressure and set up a potential overnight relief rally.
Holding above these pivots could trigger short covering toward 6050 ($ES) and 21700 ($NQ).
📚 Educational Insight: Significance of Consecutive Daily Closes
Why does it matter if we see consecutive daily closes below a significant level (like 6050)?
Confirmation of Direction: One daily close can be a fluke or reactionary; two or more consecutive daily closes confirm momentum and institutional positioning, making it harder for the opposite side (in this case, bulls) to regain control.
Momentum Builds: Consecutive closes in one direction encourage more traders and algos to position accordingly, creating self-reinforcing moves. This can amplify future selling pressure and drive stronger trends.
🎯 Trading Plan for the Final Hour
Bearish Continuation Scenario:
If price stays below 6030 ($ES) and 21575 ($NQ), consider short positions targeting retests of today's lows (5995 ES and 21405 NQ), possibly extending lower.
Bullish Reversal Scenario:
Only if buyers manage to reclaim and close firmly above 6030 ($ES) and 21575 ($NQ) would we look for short-covering and potential overnight upside toward 6050 ($ES) and above.
🧠 Final Thoughts
Today's bearish follow-through underscores sellers' dominance for now. The final hour will be critical to determine if bulls can mount any meaningful defense. Watch these key levels closely and stay disciplined—volatility remains high.
Stay sharp into the close, traders!