Headlines Fade, Buyers Step In
by Tony Rago
A big save overnight as cooler headlines out of Davos around Greenland and EU tariffs helped stabilize risk. Markets ripped off the lows, and more importantly, held those gains into the overnight session — a sign that buyers were ready to step back in once the noise settled. For ES, I’d like to see a controlled pullback into the 6,926–6,917 zone to test whether bulls are truly willing to defend. That area sits just above the bigger line in the sand at 6,900–6,888, which is the level that really matters for maintaining this upside structure. On NQ, a pullback toward 25,500–25,412 would serve the same purpose — a test, not a breakdown — giving us information on whether buyers are still in control.
Overall, the mindset stays the same: pullbacks are opportunities as long as price remains constructive and ES holds above 6,900. That doesn’t mean chasing strength — it means waiting for price to come to you and watching how it behaves at key levels. We also have PCE at 10am, which can easily add fuel or friction to the move, so context matters as we head into the cash session. Stay patient, let the levels do the talking, and be ready to act when structure confirms. Let’s get after it. 💪
👉 Full breakdown is inside today’s Pre-Market Playbook. Check it out here and trade it smart.
