🚨 I’ll be live at 9 a.m. ET🚨
The market just pieced together a small win streak of two days, should we assume things have flipped to full risk on? Today’s CPI inflation number could also be a shocker, so let’s discuss [tap to join us for the Daily Profit Plan]!
Here’s something that caught my attention recently — and it’s exactly why I’m being cautious even as the market rips higher on ceasefire optimism. We just gapped up directly into the 6,750-6,800 SPX resistance zone, and this is not an arbitrary level.
It represents months of prior consolidation that eventually broke down, and now we’re testing it from below.
The question on my mind is whether this old support now acts as resistance. If the market fades the gap at this level, it’s a clear tell that bears still care and are defending this area as a potential lower high.
Volatility adds another layer to this. With the VIX collapsing toward 20, the market is behaving as if fear has vanished overnight. Low volatility can make rallies look stronger than they are, but it can also exaggerate reactions at major technical levels. When sentiment swings this quickly, resistance often matters even more because traders are leaning into the move with limited protection.
Why This Level Matters
We spent months consolidating around the 6,750-6,800 area before it finally failed. When a structure that well defined breaks, the market usually revisits it to test conviction.
That’s exactly what we’re seeing now. The ceasefire news provided the perfect catalyst to tag this level and force a decision from both buyers and sellers.
This also explains why it’s difficult to be aggressively bearish. Sentiment is upbeat, volatility’s crushed and the VIX drop has created a huge vacuum beneath current prices. But the shape of the rally still looks inefficient, and when I measure the high-to-low structure — the same way I would using a simple box tool — a symmetry rotation becomes clear.
If this move fails at resistance and rolls over, the projection points toward the 6,112 area.
How I’m Managing Risk Here
This environment calls for discipline more than aggression. When the market rallies into a major resistance level on low volatility and upbeat catalysts, that’s not when I want to add exposure. That’s when I want to tighten positioning, reduce leverage and let the market prove it can break through with conviction.
This is the core of my plan — respecting the levels, protecting capital and avoiding the temptation to chase strength into a supply zone. If the market clears 6,800 decisively, there will be time to participate in a move toward new highs. But if this resistance holds, the next leg down could develop faster than expected.
That’s why I’m using this rally to de-risk rather than double down. It is not fear — it is portfolio management.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
- Telegram:https://t.me/+av20QmeKC5VjOTc5
- YouTube:https://www.youtube.com/@FinancialWars
- Twitter:https://x.com/realchrispulver
- Facebook: https://facebook.com/therealchrispulver
Important Note: No one from the ProsperityPub team or Chris Pulver Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. There’s Something Pretty Shocking You Won’t See in the Headlines…
Thanks to liquidity levels, you can now track Wall Street’s undercover orders in real time…
And target daily returns every day the market opens!
