•   The market has enjoyed a remarkable two-week rally, with only a single small red day.

•   Bulls have effectively bought every dip, often through identifying "Failed Breakdowns" where sellers get trapped.

•   Today saw the first red day in a week, but the decline was notably weak, suggesting potential for immediate buying.

•   Understanding institutional accumulation patterns is key to staying aligned with market strength.

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•   Two Weeks of Gains Cool Off: After an extended period of ascent, the market experienced a mild pullback, breaking a streak of consecutive green days.

•   Failed Breakdowns in Action: Yesterday’s price action highlighted a textbook Failed Breakdown, trapping short sellers and leading to an immediate rally.

•   Weak Selling Pressure: Today's dip lacked conviction, with price recovering from lows, indicating underlying buying interest.

We've been operating in a strong trending regime to the upside for the past two weeks. The behavior has been characterized by bulls stepping in aggressively on any dips, using patterns like Failed Breakdowns to add to long positions. Today's action, while technically a red day, felt more like a pause than a significant reversal, suggesting the uptrend may still be intact.

•   Failed Breakdown Confirmation: Last Wednesday, we witnessed a classic institutional accumulation event. Price broke below the 6818 low, trapping shorts, and then rapidly recovered the level, leading to an 80-point rally. This is the pattern to watch for continued upside.

•   Buying the Dip Mentality: The consistent pattern over the last two weeks has been for dips to be immediately bought. Today's weak selling pressure reinforces this behavior, suggesting a buy-the-dip approach remains favored as long as key support holds.

The recent rally took us up to the 6900-6930 zone. Today's pullback saw price briefly test lower levels, but the swift recovery of the 6818 low from Wednesday is crucial. For tomorrow, holding above this 6818 level is paramount. A sustained break below it would signal a potential shift, but for now, it remains a critical support shelf. The 6865 level also acted as recent resistance, now potentially a support area.

The focus for tomorrow is on whether today's dip gets bought with conviction. If price holds above the 6818 level and begins to push back towards recent highs, look for continuation longs. The Failed Breakdown pattern from last Wednesday remains the actionable insight. A decisive break below 6818, however, would warrant a more cautious stance, potentially signaling a deeper correction. For now, the bias remains to the long side as long as key support is defended.

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Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor before making investment decisions.