Following five days of tight consolidation, the market broke out overnight, hitting the 5820 upside target as outlined in the Daily Trade Strategy. The key expansion trigger zone identified between 5785-5795 was a critical resistance level that bulls needed to clear for further upside momentum.

Early in the session, price action was volatile, with an initial pullback finding support at the Full Session VWAP (5813-5817), signaling a potential retest of the overnight high.

The market tested several key zones, including the statistically significant Target Master Level 3 (5724), which elicited a nominal rejection as expected. Short positions in both the S&P 500 (@ES) and Nasdaq (@NQ) played out favorably, hitting lower targets and filling gaps from earlier sessions.

A key area of interest developed around the 5800 level, representing the top edge of a multi-day consolidation range. The mid-session saw price stabilize between 5790-5805, bolstered by large options buying and put sellers providing support. However, a break below 5790 triggered a rapid liquidation event, taking price back down to the Globex low.

In the afternoon session, after a sharp flush to the “Line in the Sand” zone at 5775, buyers aggressively stepped in, driving the market back 20 points higher. Price action ultimately cleared the 5795 breakout zone, signaling potential for an afternoon push. Despite this, the session closed on a neutral note, rotating back to the 5805 VWAP, indicating a balance between buyers and sellers as the market heads into the next session.