ES Pre-Market Breakdown: Key Levels & Traps to Avoid at All-Time Highs

Let’s start with the daily. Um, so we’ll kind of recap the week here a little bit. So Monday, we had this uh failed expansion here up in the new all-time highs, pushed back down uh during the uh closing session. Tuesday was the almost nearly the exact mirror image inverse of that. So, we had a dip into low uh lower prices, got rejected, settled right back up in the middle of the range, clearing the decks for this expansion move. Uh was going to happen either one way or the other. And we did end up uh pushing into more and more deeper all-time highs. Uh at the close yesterday, uh we were roughly right around this uh uh this spot, right? Actually, I think we were deeper than that actually. We were yeah during the close it was right around that uh right at the closing bell we had that late surge up to 6,400 uh and during the overnight we pushed just a little bit further and then uh ranged sideways for the duration. Uh you can see that right here we ranged in about a 17 point uh well even less than that uh about a 16 point range. Okay, so going into today, here’s what we’re kind of looking at on the hourly. Uh we are looking at the overnight high right here and just below the overnight low, we’ve got that PC from yesterday’s trending action. This is where the most volume uh went off yesterday. So, we’re going to see if that holds. If this ends up failing, we’re going to have a little bit of uh uh obstruction here to the downside. We’ll see if we can slip through here. Tagging target one, which uh again is nothing more than uh essentially the overnight high from yesterday. So from here to here, we’ve got about 13 points of margin. From here on up all the way up through here, these are all Fibonacci targets. Uh the 23, the 6437, and the 6448 to the downside here. Uh we do have this one right here. And this one is nothing more than the uh uh the top side expansion of this 1 hour fair value gap in here. And then we do have this weekly PC down here again if things get ultra bearish for a pullback. So in markets like this we are at all-time highs. So you have to exercise a little bit of caution on these breakouts like yesterday. You don’t want to get caught on that on that opening breakout that failed and then pushed back down for that later on in the day breakout. Uh same thing to the downside. You don’t want to get caught in a failed breakdown and a pop back to the upside in this highly bullish market. So, we’re going to exercise a little bit of caution here. Make sure that we get our breakdown uh our close through heavy selling action going on a pullback that holds and then we can start to take these levels down to the south side. Same thing with the upside on the way expanding up. Uh that’s what we’re looking at today and we’re going to wait and see for that New York cash session volume to confirm uh any setups and moves that happen to uh generate along the way. So good luck today. Happy trading.

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