Market Overview
The trading session began with a focus on Options Expiration, setting the tone for early trading dynamics. A strong bullish bias emerged, driven by key level reclaims and favorable market sentiment. Traders were advised to maintain a long-lean approach throughout the session as price action confirmed strength.
Key Levels and Observations
- Critical Support & Resistance:
- 5890: Early identified as the pullback level to validate a bullish reversal. Price held above this level, solidifying the bull shift.
- 5931 (Y-LOW): Successfully cleared and converted, reinforcing long positions and signaling additional upward momentum.
- Breakout Confirmation:
- Reclaiming broken levels and clearing key pivots was highlighted as a significant buy signal.
- Initial upside targets exceeded, with price pressing into the Central Pivot Zone, confirming continued strength.
- Sector Strength:
- Equal-weighted indices outperforming the SPX were noted as a bullish indicator, with sectors showing broad-based strength.
Trade Execution Insights
- Playbook Scenarios:
- Traders were encouraged to add structured trade scenarios based on observed market conditions and clear signal setups.
- Clear conversions of prior lows (e.g., P-LOW) provided actionable entry points for long trades.
- Cycle Options Strategy:
- A high-probability 3-Day Cycle trade unfolded successfully, shaping up as a “Super Cycle” heading into the holiday period.
- Positive odds (92.50%) for this cycle were emphasized, providing confidence for call options plays.
Trading Sentiment
- The session saw a decisive bullish sentiment with minimal opportunities for shorts.
- Traders were cautioned against a “perma-bear” mindset as market conditions strongly favored long trades.
- A metaphorical “runaway train” described the day’s bullish momentum, leaving little reason to countertrend.
Closing Remarks
As the session progressed, the market maintained its upward trajectory, with key levels and signals continuing to support long strategies. PTGDavid signed off early, reminding traders to rest and prepare for the next trading week.
Looking Ahead
- The successful reclaim of broken levels and strong sector performance sets a positive tone for the upcoming week.
- Traders should remain vigilant for continued follow-through, especially as the holiday trading period may bring unique opportunities and volatility.