The trading session on April 21st unfolded under persistent bearish pressure, with markets opening weak and maintaining a downward trajectory throughout the day. As noted by PTGDavid, the day was classified as Cycle Day 3, adjusted to account for the Good Friday market closure, which did not count toward the cycle.
Key Observations:
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Opening Sentiment:
The S&P 500 and Nasdaq 100 opened within a clearly defined range, with ES at 5245–5265. Bearish control was apparent early, as PTGDavid remarked that “bears have ball-control” coming into the session. -
Trade Execution & Progression:
A short trigger on the Nasdaq open range setup hit both target levels, affirming the bearish momentum. A crude oil short (CL) was also triggered but failed to follow through, which PTGDavid noted as a rare underperformance relative to recent behavior. -
Levels of Interest:
Several key downside levels were highlighted and respected during the day:-
5251: Cycle Day 1 low—initial retest level overnight.
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5215 & 5180: Bullish challenge zones, later flipped into resistance.
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5130: Reached as IB (Initial Balance) Target 2—another sign of selling strength.
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Market Structure & Sentiment:
Price action remained one-directional, lacking any meaningful countertrend bounces. PTGDavid emphasized the “challenging rhythm” of the day and the clear lack of bullish structural shifts. A late-session “short covering” rally did emerge but was insufficient to recover the day’s deep losses. -
Performance Recap:
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S&P 500: Closed down over 2% at session lows.
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Nasdaq 100: Also declined more than 2.25% intraday.
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Gold (GLD): Stood out as the sole outperformer, gaining +3%, reflecting a risk-off sentiment.
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Educational Takeaway:
Understanding Market Rhythm Enhances Trade Management
PTGDavid’s commentary reinforces a key trading principle: adapting to the prevailing market structure and rhythm is crucial. On strongly trending days—especially when one side (in this case, the bears) retains full control—it’s often best to focus on continuation setups rather than countertrend opportunities. Recognizing early signs of control, such as an opening range break with no structural shifts, can guide traders toward higher-probability trade management, such as trailing winners rather than looking for reversals.