Market Analysis for The Week of 6/7
The Trap Door Sprung
If you are looking to join the Discord please see here: JOIN THE DISCORD Please email help@pharmdcapital.com if there are any technical issues. The daily and weekly plans are posted in the Discord so the Discord option includes Substack content, but a new Substack subscription does not include Discord access.
Be sure you have read the Starter Kit, including the free section even if you’re a paid subscriber. Trading Doggy Style Starter Kit
The 2026 Equity Markets Year Ahead can be seen here: 2026 Equity Markets Year Ahead
I hope many of you took advantage of and benefited from last week’s plan without a paywall. The “most bearish” scenario set up after ES tagged the primary 7631-7634 target and NQ tagged its primary target of 30700s-30800s.
The bulk of this past week’s volume was put in above 7569-7572. The gap down on Thursday, provided the “first pass” into the area which was expected to be reactive (especially on NQ) and Thursday saw a massive rally. However, last week’s high in the 7610-7613 level was rejected from below into the close. Friday saw a large gap down and go which took out last week’s low in the first 30 minutes. Buyers made an attempt to hold it, but once Friday’s IB low was broken to the downside, indices were in full blown liquidation mode. I think a lot of people were blaming NFP and the change in rate expectations from the Fed, others were blaming the impending IPOs. Neither of these were the primary reason but it certainly provided a perfect storm to trigger the “trap door setup” which I had been hoping to save for the weekly plan. While I’ll get into the primary reason for today’s sell below, what is most important is to understand that this was a liquidation of longs. This was not short sellers who had suddenly grown a pair. Liquidations like this are VERY bullish (not a typo), but they are bullish when they are completed. We’ll discuss the technical locations most likely for this liquidation to terminate, but with liquidations all that really matters is when the unwind is completed. This move is incredibly similar to the move from 10/10/2025 and I had made a copy of the plan from that week without a paywall and it is linked here for your review and future reference. Trap Door / Stacked Boxes
JOIN THE DISCORD for the intro course, weekly and daily plans, real time commentary and trade setups and swing trade alerts.