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If you’ve been watching the E-mini S&P 500 futures recently, you’ve probably seen how strong the uptrend has been. We had multiple days in a row where the market just kept pushing higher — and when that happens, it’s easy to assume it’s going to continue the same way.
But that’s usually where traders get caught.
Instead of chasing strength late, what I focus on is recognizing when a pullback is likely coming — so I can stay out of the way and be ready for the next opportunity.
Start With the Bigger Picture Trend
Before anything else, I’m always identifying whether the market is actually in a trend. In this case, the daily chart of the ES futures June 2026 front month was clearly showing an uptrend, with strong, consecutive bullish days.
At the same time, I’m watching the 60-minute chart very closely. Over the years, this has become one of the most important charts I follow — it gives a really good read on the market’s internal movement, especially if you’re trading intraday.
Even if you’re not placing trades directly from it, it’s worth studying. And if you want to shortcut that process a bit, this is exactly the kind of analysis I share each morning in my Skinny on the Mini report inside my ES Futures Outlook service.
1️⃣ Three Strong Up Days in a Row
The first clue came from the simple fact that we had three strong up days back-to-back.
When you see that kind of move, it tells you the trend is strong, but it also raises the odds that some profit taking could come in next.
After a few days like that, a lot of traders who have been long are sitting on gains. So as you move into the next session, especially around the New York open, you have to be aware that some of that positioning can start to unwind.
It doesn’t mean the uptrend is over.
It just means the market may need a pause before it continues.
And that’s where traders can get caught — assuming the same behavior is going to carry forward without adjusting for what just happened over the last few sessions.
2️⃣ Momentum Signal Shift
The next thing I look at is momentum, specifically using RSI Power Zones.
In this case, there was a disconnect between price and momentum.
Price was still pushing higher, but momentum wasn’t confirming it the same way. That shift is important, because it can be one of the first signs that buyers are starting to step back a bit.
When momentum starts to change while price is still elevated, it often lines up with traders beginning to take profits rather than aggressively pushing price higher.
So even though the chart may still look strong on the surface, underneath it, you can start to see that the move is losing some of that strength.
That’s what puts me on alert for a pullback, especially in the early part of the trading day.
3️⃣ Break of a Key 60-Minute Low
The final piece was short-term price action.
Every trend has specific levels that help maintain it, and in this case, there was a key 60-minute low that was holding the move higher.
That level was essentially defining the most recent leg of the uptrend. As long as it held, the move was still intact.
But once I saw that level break during the overnight session, before the open, it added confirmation to everything else I was already seeing.
At that point, I had:
- Multiple strong up days
- A momentum signal shift
- A break of a key support level
That combination was enough to expect a pullback rather than continuation at the open, and to stay patient instead of trying to force a long too early.
Putting It All Together
With those signals in place, the goal wasn’t to predict the exact size of the move. It was to avoid getting caught buying too late into strength.
That’s where a lot of traders give back gains — after a strong run, expecting the same behavior to continue without checking for these signals.
By recognizing the setup ahead of time, I was able to stay patient and wait for the market to correct before looking for the next opportunity.
And in this case, that’s exactly what happened — a pullback first, followed by stabilization and continuation higher.
Pullbacks are a normal part of any trend.
The key is knowing when conditions are shifting so you can adjust your approach instead of reacting late.
If you’re found value in this breakdown, go ahead and watch the full video and hit the Like button on Youtube.
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