ES and Metals In Grasp Of Liquidation Event
By
Mike Paulenoff
Good Thursday Morning, MPTraders! March 19, 2026-- Pre-Market Update:
Looking at all the red price action across my screens this AM, extending yesterday's relentless decline, the weakness reinforces my growing sense that ES is in the grasp of a liquidation event, a protection and preservation of capital operation during a period of constant uncertainty that continues to rotate through sectors and asset classes...
ES is down 38 points and 0.6%, but more importantly, is pressing dangerously into the March 2026 corrective low-zone from 6634.25 down to 6608.50, which must contain the selling pressure to avert downside continuation and acceleration toward my next optimal target support plateau at 6400-6420.
The fact that ES is under pre-market selling pressure this AM in the aftermath of yesterday's late-session "panic" to buy puts (sending the Put/Call Ratio to a very overbought 1.10) suggests the panic phase is not yet exhausted. The big question is whether a larger flush-out to the downside is "necessary," implying an ES plunge beneath the lower boundary plateau of the 7-month trading range shown on my attached 4-Hour chart? To avert such a negative scenario, ES needs to climb through resistance from 6662 to 6695 to trigger an initial signal that a downleg to 6400 has been averted (delayed) for the time being... Last in ES is 6632.00...
The latest money-raising liquidity event is unfolding in the precious metals, which hit the skids in overnight trading. My attached 4-Hour Charts of GLD and SLV show the carnage.
GLD has plunged nearly 10% since mid-day Tuesday, and in the process, has sliced beneath its dominant up trendline from the August 2025 low at 305.06 that cuts across the price axis in the vicinity of 432.50. The inability of GLD to recover above 432.50 leaves it vulnerable to downside continuation that fully tests the Feb.2026 low at 404.91... Last is 419.44...
SLV hit a low of 60.18 so far this AM, down a full 20% since mid-day Tuesday as the price structure approaches a full-fledged retest of the February low at 58.51. A powerful upside reversal and close above 64.70 is needed to avert a test of the February low at 58.51... Last is 60.96...
