•   The S&P 500 has seen incredible strength, with only one down day in the last two weeks.

•   Institutions are signaling their moves through specific chart patterns, like failed breakdowns, and we've been following them.

•   The question now is whether this momentum can continue, or if we're due for a cooldown.

•   Today, we'll break down these institutional footprints and map out a plan for the upcoming session.

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• Relentless Upside Continues The market has powered higher for two straight weeks, defying gravity and trapping many short sellers.

• Failed Breakdowns Driving Gains We've seen consistent institutional accumulation through a specific pattern, the failed breakdown, leading to sharp rallies.

• Record Streak Narrowly Avoided With only one red day in two weeks, the market narrowly missed a new record for consecutive positive days.

We've been in a strong uptrending regime for the past two weeks. Price discovery has been overwhelmingly to the upside, with dips acting as buying opportunities. This is characterized by a grind higher rather than explosive, sustained moves, often punctuated by quick pullbacks that are then bought.

•   Failed Breakdowns: This is the institutional signature we've been watching. It involves a sharp sell-off that undercuts a previous low, traps short sellers, and then sees price quickly recover that low, leading to a squeeze higher. We observed this pattern multiple times this past week, each leading to further upside. For example, we saw one on Wednesday after a dip from resistance, and another on Thursday that led to a strong intraday recovery.

•   Level Reclaims: Following a flush, reclaiming a key psychological or technical level (like 6860 after a dip to 6856) has proven to be a reliable entry signal for continued upside.

The key area to watch is the recent highs around 6902 and subsequent targets like 6918 and 6931. The 6800s have acted as a strong support base following the initial institutional accumulation event around November 21st. Any significant break below 6836, which was a key low recovered on Thursday, would signal a potential shift in momentum. For Monday, immediate resistance is at the intraday highs, and support lies at the previous day's low and the 6800 psychological level.

The market has shown remarkable resilience, grinding higher on successive failed breakdowns. However, after two weeks of such strong upside with minimal pullbacks, caution is warranted. My lean is to observe for a potential filling of gaps or a more significant pullback to test support levels. If we see another failed breakdown setup from a slightly higher level, it could offer another entry. However, I will be looking for a clearer indication of a bottoming pattern or a continuation signal after a healthy consolidation period. A lack of immediate high-probability setups means I'll be patient.

•   S&P 500 Poised for Steady Gains as Inflation Fears Ease - Reuters, Sun, 07 Dec 2025

•   Market Movers: What to Watch as Earnings Season Winds Down - Wall Street Journal, Sat, 06 Dec 2025

•   Tech Stocks Lead Rally, But Analysts Warn of Overvaluation - Bloomberg, Fri, 05 Dec 2025

•   Why the Fed's Next Move is Critical for Investors - CNBC, Thu, 04 Dec 2025

•   Small-Cap Stocks Show Signs of Life Amid Broader Market Strength - MarketWatch, Wed, 03 Dec 2025

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