OVERVIEW
Momentum Resetting: Bulls Back in Control

🟢 Risk-On: With the Middle East risk now fading, markets are back in constructive mode. Breadth is improving across key sectors.

🔄 Rotation & Leadership: Semiconductors remain the anchor — AI names (MU, NVDA, ARM) holding firm, while technology, retail, and real estate show early strength. Watch for new bases forming across growth sectors.

📌 What to Do Now:

• Stay focused on top groups and setups: market is absorbing negative news exceptionally well.

• With volatility fading, expect rotation back toward leaders and key breakout levels in the days ahead.

• This is the time to get your watchlists in order as fresh opportunities should emerge quickly as momentum rebuilds.

MARKET ANALYSIS
The Geopolitical Risk Has Been Absorbed

The market has clearly priced in a quick resolution to the Middle East crisis, and that’s what we got.

After the ceasefire announcements and confirmations, the geopolitical risk that had been weighing on sentiment is easing. This has allowed the market to refocus and resume its march toward all-time highs.

With the Israel-Iran situation seemingly defused, everyone is now turning their attention back to the macro backdrop. That means monitoring earnings season, economic data, and the upcoming Powell speech today which comes at a very important time as he has been facing a lot of pressure to begin to cut interest rates.

The market is now digesting these fundamentals while moving past the headline noise, setting the stage for what could be a continued push higher.

Nasdaq

The QQQ remains the most important index to track for us. It is the engine of the current market and where Nasdaq leads, the rest of the market tends to follow.

✅ Yesterday we saw a strong bullish engulfing candle
✅ Clean bounce right on the 20 day EMA exactly where we wanted to see demand step in
✅ High relative volume supporting the move
✅ The handle of this large cup and handle formation is now fully validated

This morning we are gapping up above the key supply zone at 533 and now sitting just below all time highs. With no overhead price memory, the sky is the limit and this could easily trigger FOMO buying.

⚠️ One note of caution: Large gap ups often invite profit taking early in the session. The best practice is always to let an opening range form and wait for price confirmation before adding exposure.

S&P 400 Midcap

The midcaps continue to hold their long standing multi week flag. We have now seen multiple clean touches and holds on both the rising 50 day EMA and the 200 day EMA.

Yesterday’s session showed another sign of strength as MDY pushed back over the 200 day EMA and into the Point of Control right at 560.

We are now sitting at a key decision zone. MDY looks ready to break out and when you look at the visible range volume profile there is very little overhead supply from 560 all the way to all time highs.

Russell 2000

The small caps are also acting very well, bouncing off their point of control near $206. They are pushing above their contraction zones and into dense overhead supply levels.

🔄 Market Breadth in Focus

Notice the confluence between large, mid, and small caps all showing strength simultaneously. This broad alignment is a high conviction signal of strong market breadth and structural health.

From a technical and flow perspective, when multiple market segments synchronize their behavior, holding key support levels, respecting moving averages, and breaking out of bases, it reflects a robust risk on environment.

This reduces concentration risk, indicating that leadership is not isolated to just a few mega cap tech names but is spreading across the risk spectrum.

Such breadth often precedes sustained rallies because it shows diverse participation from institutional and retail players alike, increasing the resilience of the uptrend against shocks or profit taking.

✅ In short: This broad based strength offers higher odds for continuation and lower probability of a swift correction.

🧠 Mindset Check: Why Pullbacks Are Your Best Friend

One of the biggest lessons for any serious trader is understanding this simple truth

Pullbacks are a gift

They give us critical information
👉 Which stocks have real relative strength
👉 Which are moving on true demand versus sympathy flows
👉 Which names in your portfolio deserve conviction and which do not

When markets pull back or when your own stocks dip into rising EMAs you learn who the real leaders are. The stocks that absorb volatility and hold key levels are the ones that institutions are defending. These are the setups with the best asymmetric risk reward

Right now even with headline after headline the market is absorbing bad news very well. Our leaders are still holding trend respecting EMAs and showing that buyers are in control

That gives us confidence to keep pushing our edge. If the tape was breaking we would know. So trust the tape not the headlines

Your job
✅ Watch how stocks behave on pullbacks
✅ Double down on the strongest leaders
✅ Manage risk if a leader truly fails but do not sell good stocks just because the news cycle sounds scary

This is exactly how you build conviction cycle after cycle

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FOCUSED STOCK
UBER: Multi Timeframe Opportunity Building

UBER is one of the stronger names on our focus list and today is a very good spot to be watching for fresh exposure.

Looking at the daily chart first. UBER pulled back to its rising 50 day EMA and Point of Control where buyers stepped in with a strong bullish engulfing candle. This reaction was very important because there is very little volume support below this level.

If the stock had failed here, it could have easily flushed down to the 200 day EMA. Instead, the premarket is confirming strength with a gap higher.

Even more importantly, when we zoom out to the weekly chart, UBER is holding perfectly on its rising 10 week EMA. This is the kind of multi timeframe confluence that gives us clarity. The stock is also forming a secondary volatility contraction pattern after breaking out of a Stage 1 base in late April.

UBER is not extended and is now offering a very clean opportunity to position through an opening range high breakout. The demand is there, the pattern is there, and it is aligned with the broader strength we continue to see.

FOCUSED GROUP
CIBR: Cybersecurity

Cybersecurity continues to be one of the top performing sectors in the entire market. PLTR, which is the number one leading stock right now, is making new highs almost daily. Alongside that, other top names like NET and CRWD remain extremely strong. This tells us leadership here is broad, not narrow.

Yesterday’s action in CIBR stood out. After a high volume flush on Friday, the group reversed sharply with a powerful bullish engulfing candle. This breakout cleared three weeks of consolidation, reclaimed the POC, and closed at fresh all time highs on strong relative volume.

When you see a group shake out the weak hands and immediately power back to highs on strong volume, that is institutional demand in action. This is exactly the kind of relative strength you want to focus on during periods of market chop.

Q&A
Got a trading question? Hit reply and ask!

Q: “I sold all of my exposure because of the Middle East drama… now what do I do? Should I get back in?”

A: First, this is a valuable learning moment. You’ve just taken an important step toward understanding that trading is a business, not an emotional reaction to headlines.

And like any real business, it must be run on clear, defined processes, not gut feelings or news cycles. You need well defined criteria for:

✅ When you enter
✅ How you size positions
✅ How you manage risk
✅ And most importantly, when and why you exit

Selling simply because the news flow feels bad, without price breaking key trend levels or invalidating your setup, is not following process, it is reacting emotionally.

And if you look at the actual price behaviour, the market absorbed the news flow extremely well:

• Major indices held their 10/20 EMAs

• No broad breakdown in breadth

• Sector leaders (semiconductors for example) held trend

• Gold and gold miners (classic defensive plays) failed to materially break higher

• There was no clear rotation into full risk-off havens, meaning capital was not fleeing equities en masse

That tells us that money flow and institutional positioning remained stable despite the scary headlines. And that is what matters. Price is the truth, not the news.

So what do you do now?

First, do not panic and chase back in today. You want to trade from strength, not FOMO. Wait for new high-quality setups, patterns with clear entries, momentum, and trend support, and re-engage from a position of clarity.

There are plenty of good looking setups in the market today, but it is critical that you have clearly defined what a valid setup looks like for your process.

We are extremely disciplined in this regard. We only trade volatility contraction patterns (VCP) and earnings-based episodic pivots. That means we do not trade random pullbacks, we do not scalp, and we do not chase noise.

Trading is about edge and repeatability, and that only comes from absolute clarity on what you trade and why.

Second, tighten your process. If you do not yet have rules for when to sell (for example, close below key EMAs on strong volume, pattern failure), that is the first thing to fix. Trading is a business, and without those rules, your business has no strategy.

Professional traders are not geopolitical analysts or macroeconomists, we are chart readers. We trade the actual behaviour of markets. Keep that front and centre in your process and results will follow.

Want to learn how to build a professional, repeatable trading process from entry to exit & get live trade reviews each day?

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