Relentless Melt-Up Continues; CAVA Follows Our Technical Script

Good Wednesday Morning, MPTraders!  August 13, 2025-- Pre-Market Update: 

The slow-mo, but relentless equity market melt-up continues this AM, with ES clawing its way to higher ATHs at 6488.50, in route to my measured near-term upside target zone at 6530-6560 derived from the thrust out of the post-7/31 Triangle formation.

On my attached Daily ES Chart, I have raised my outlier upside target level to 6600, which represents an overshoot BIG FIGURE, magnetic target above the extension of the resistance line across the highs established on 7/03/25 at 6333.25 and on 7/31/25 at 6468.50. 

From an intermediate-term perspective, only a sharp downside reversal and press below consequential support lodged from 6417 down through 6358 will inflict serious damage to the post-April advance... Last is 6486.25...

As for CAVA, which reported disappointing Earnings last evening, the negative reaction followed my preferred technical setup discussed yesterday afternoon:

CAVA reports Earnings after the close. My attached Big Picture pattern setup argues that all of the price action since the April 2025 low at 70.00 has carved out a sideways, bearish digestion period and pattern that belies the otherwise bullish patterns in many other sectors. Technically, CAVA's setup since April 2025 has the right look of a Bear Flag formation jutting out from the downtrend from the ATH at 172.65 (11/13/24) to 70.00 (4/07/25), which my work indicates should resolve itself to the downside toward an optimal target support window of 59 to 63 to complete CAVA major corrective phase after its October 2023 to Nobember 2024 Bull Phase.  As long as any forthcoming strength is capped below or within 91-94 resistance, CAVA will remain vulnerable to downside continuation that tests and violates multi-month support lodged between 70 and 73.30... An initially positive reaction to Earnings that fails to hurdle 91-94 resistance will preserve the bearish intermediate-term setup calling for a press to new corrective lows beneath 70... Last is 84.28...

What now?  The setup indicates that we should be looking for a MAJOR LOW in the stock in and around 60 in the upcoming hours/days, where CAVA should be exhibiting signs of extreme downside exhaustion that pre-dates a powerful upside reversal signal... Last is 65.37 off of a post-Earnings low at 63.79...