Market Overview
Overnight price action tested both upper and lower target zones outlined in today’s Daily Trade Strategy, continuing the streak of highly accurate plans. The trading session was characterized by volatility and sharp reversals, with bulls and bears fighting to assert control at key levels. Ultimately, disciplined execution and adherence to strategy provided clear opportunities for profit.
Key Levels and Scenarios
- Bullish Scenario: Sustained bids above 5915 targeted 5925–5930, with subsequent extensions.
- Bearish Scenario: Sustained offers below 5915 targeted 5890–5885.
For @NQ (Nasdaq Futures):
- Bullish Scenario: Above 20630, targets were 20675–20725.
- Bearish Scenario: Below 20630, targets were 20495–20485.
Morning Session
- Critical Support Level (5886): Price dipped below the Cycle Day 1 Low (5886) early but reclaimed it shortly thereafter, signaling a bullish pivot.
- Breakouts above the opening range solidified a long bias, with bulls converting critical levels into support.
Midday Action
- Target Achievement: Price fulfilled the Cycle Target of 5947, as outlined. Discipline was emphasized, with stop trails tightened or positions exited to manage the increased reversal risk following target hits.
- Momentum: Buyers absorbed heavy selling pressure, notably sweeping a significant iceberg sell order at 5932.50 (4K contracts), demonstrating robust demand.
Afternoon Highlights
- Bullish Resilience: Bulls maintained control, holding price safely above pivotal levels like 5933, into the session close.
- MOC (Market-on-Close): A strong $1.4B Buy Imbalance further solidified the bullish case, ensuring a positive session conclusion.
Key Observations
- Discipline at Target Levels: Once the 5947 target was hit, the focus shifted to tightening stops or exiting, as reversal risks increased.
- Dynamic Adjustments: As market conditions evolved, opportunities for long re-entries on dips were prioritized, with shorts deemed inappropriate for the majority of the session.
- Cycle Levels and Breakouts: Reclaiming key cycle levels (e.g., 5886) and subsequent breakouts provided clarity and confidence for long positions.
Conclusion
Today’s session showcased the importance of adhering to structured trade strategies and managing risk effectively. With precise target levels, disciplined execution, and adaptability to shifting conditions, the strategy continued to deliver strong results for both short- and long-term traders.